The Multiple Choice Questions Blog

The sales ledger control account of a business showed a balance of £14,320.

A customer, who owes £1,000, has also supplied the business with £400 of goods.

This was offset against the amount owed by the customer.

What was the sales ledger control account balance after the offset?

Select ONE answer:

1. £13,720
2. £13,920
3. £14,720
4. £14,920

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct ==> £14,320 – £400
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which statement is not correct about the benefit to a business of maintaining control accounts?

Select ONE answer:

1. ensures that all types of errors can be detected
2. helps in the preparation of financial statements
3. provides immediate totals of trade receivables and trade payables
4. reduces risk of fraud as jobs are performed by different staff members

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The following information relates to the disposal of a non-current asset.

• profit on disposal – £5 200
• cost of non-current asset sold – £14 400
• sales proceeds – £6 800

What was the accumulated depreciation on the non-current asset sold?

Select ONE answer:

1. £1,600
2. £2,400
3. £7,600
4. £12,800

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct ==> £14,400 + £5,200 – £6,800

This work is licensed under a Creative Commons Attribution 4.0 International License.

A business had a non-current asset with a net book value of £18,000 at 31 December 2021.

It had been purchased during the year ended 31 December 2020.

Depreciation is charged at a rate of 25% per annum using the reducing balance method.

A full year’s depreciation is charged in the year of purchase.

What was the original cost of the non-current asset?

Select ONE answer:

1. £22,500
2. £24,000
3. £27,000
4. £32,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct ==> £18k / 0.75 / 0.75 = £32k

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which costs are NOT a part of capital expenditure when purchasing a new machine?

1 delivery costs
2 installation costs
3 machine operator training costs

Select ONE answer:

1. 1 and 2
2. 2 and 3
3. 2 only
4. 3 only

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.