The Multiple Choice Questions Blog

Given the following information below, calculate the amount owed to a firm by its debtors as at 31 December.

• Debtors at 1 January £11,500
• Credit sales for the period 1 January – 31 December £48,000
• Money received from debtors between 1 January and 31 December £45,000

Select ONE answer:

1. £8,500
2. £14,500
3. £18,500
4. £83,500

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

Answer 2:

Debtors
Dr Balance b/d £11,500
Dr Sales (Credit) £48,000
Dr Totals £59,500
Cr Bank £45,000
Cr Bad Debts £0
Cr Balance c/d £14,500
Cr Totals £59,500

 

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Over the course of an accounting period, the amount owed by a firm to its creditors decreased by £20,000.

During the period, the firm’s purchases totalled £950,000, of which 80% were on credit. The firm did not receive any discount from its suppliers during the period.

On the basis of the information, the amount which the firm paid to its creditors during the period was?

Select ONE answer:

1. £740,000
2. £760,000
3. £780,000
4. £930,000

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 – Credit purchases – £950,000 @ 80% = £760,000. Assume that creditors owed £20,000 at the beginning of the year and did not owe anything at the end of the year (a reduction of £20,000 over the course of the period).
4. Not Correct

 

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At the beginning of an accounting period, a firm was owed £900 by its debtors. At the end of the same accounting period, the firm’s debtors owed £1,500.

During the period, bad debt of £100 was written off and £5,000 was received from credit customers.

The total of the firm’s credit sales for the period was?

Select ONE answer:

1. £3,700
2. £4,200
3. £5,700
4. £5,900

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

Answer 3:

Debtors
Dr Balance b/d £900
Dr Sales (Credit) £5,700
Dr Totals £6,600
Cr Bank £5,000
Cr Bad Debts £100
Cr Balance c/d £1,500
Cr Totals £6,600

 

 

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At the beginning of an accounting period, a firm owed its creditors £15,000.

During the period, the firm’s credit purchases amounted to £87,000 and it paid £94,000 to its creditors.

Assuming there were no other transactions relating to creditors, at the end of the accounting period the firm owed its creditors the sum of?

Select ONE answer:

1. £7,000
2. £8,000
3. £14,000
4. £22,000

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 2

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

Answer 2:

Creditors
Dr Bank £94,000
Dr Balance c/d £8,000
Dr Total £102,000
Cr Balance b/d £15,000
Cr Purchases £87,000
Cr Total £102,000

 

 

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Over the course of an accounting period, the amount owed to a firm by its debtors increased by £50,000. During the period, credit sales totaled £230,000 and money received from debtors amounted to £190,000. The £10,000 apparent discrepancy could be due to unrecorded . . .

Select ONE answer:

1. discount allowed
2. bad debts
3. sales returns
4. credit sales

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 – Recording discount allowed not previously recorded would reduce the balance on the debtor control account.
2. Not correct – Recording bad debts not previously recorded would reduce the balance on the debtor control account.
3. Not correct -Recording sales returns not previously recorded would reduce the balance on the debtor control account.
4. Correct – Based solely on the total of the credit sales (£230,000) and the total amount received from debtors (£190,000) it would appear that debtors increased by £40,000. However, the actual increase is £50,000. Therefore, the correct solution is the one which, when corrected, would increase the balance on the debtor control account.

 

 

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