The Multiple Choice Questions Blog

A club charges each of its 100 members an annual subscription of £12.

At the end of a year four members had not paid their annual subscription. 

What will be the entries in the financial statements for subscriptions?

Select ONE answer:

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 3

1. Not correct
2. Not correct
3. Correct ==> 100 * £12 = £1,200 / 4 * £12 = £48 Asset
4. Not correct

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An item of revenue expenditure has been incorrectly treated as capital expenditure in the accounts of a business.

What effect will the correction of this error have on the accounts? 

Select ONE answer:

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

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A trial balance does not balance.

The difference has been entered in a Suspense account. 

The following errors are found below.

What is the correcting debit entry to the Suspense account?

Select ONE answer:

1. £47,340
2. £95,010
3. £95,640
4. £97,560 

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 3

1. Not correct
2. Not correct
3. Correct ==> £48,300 * 2 – £960 ==> No 3 is ignored as the debit is simply a reclassification manner
4. Not correct

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

When preparing a bank reconciliation statement the following information is available. 

What is the balance on the bank statement?

Select ONE answer:

1. £18,600
2. £19,200
3. £20,800
4. £21,400

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 3

1. Not correct
2. Not correct
3. Correct ==> £20,000 – £2,500 – £1,400 – £300
4. Not correct

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

A company does not include the value of skills gained by its employees from training programmes in its financial statements. 

Which accounting principle is being applied?

Select ONE answer:

1. consistency
2. materiality
3. money measurement
4. substance over form

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 3

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

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