The Multiple Choice Questions Blog

Lucy Limited provided the following information.

Issued and paid up share capital – £400,000
General Reserves – £60,000
Retained Earnings – £30,000
20% Debentures – £40,000

What was the value of equity?

Select ONE answer:

1. £430,000
2. £460,000
3. £490,000
4. £530,000

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 3

1. Not correct
2. Not correct
3. Correct – £400k + £60k + £30k
4. Not correct

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Lucy and Alex are in partnership, sharing profits and losses equally. Interest on capital account balances is to be allowed at 5%.

The capital account balances at the start of the year were: Lucy – £10,000; Alex – £20,000.

The profit for the year was £28,000.

How much was credited to Lucy’s current account at the end of the year?

Select ONE answer:

1. £13,250
2. £13,750
3. £14,000
4. £14,250

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
3. Not correct
4. Not correct

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Which should be entered in the appropriation account of a partnership?

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

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

How is capital employed calculated?

Select ONE answer:

1. current assets – current liabilities
2. non-current assets + current assets
3. owner’s capital + non-current liabilities
4. owner’s capital + total liabilities

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.

Which statement below is correct?

Select ONE answer:

1. cost of goods sold – gross profit – sales returns = revenue
2. cost of goods sold – gross profit + sales returns = revenue
3. cost of goods sold + gross profit – sales returns = revenue
4. cost of goods sold + gross profit + sales returns = revenue

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.