Tag: A-Level

Alex depreciates his buildings at the rate of 2% per annum using the straight line method.

He bought land for £200,000. It cost Alex £120,000 to build a warehouse on it. After five years, Alex sold the warehouse for £299,000.

What was the profit or loss on disposal?

Select ONE answer:

1. £9,000 loss
2. £9,000 profit
3. £12,000 loss
4. £12,000 profit

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 – £200k + £120k = £320k – (5 years * £2.4k p.a.) – £299k = £9 loss
2. Not correct
3. Not correct
4. Not correct

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For which non-current assets is the revaluation method of depreciation most appropriate?

Select ONE answer:

1. loose tools
2. motor vehicles
3. office equipment
4. plant and machinery

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.

Lucy bought a computer for £800, and some ink cartridges for £50 to be used in the business. Both of these amounts were debited to the purchases account.

What was the effect of this error on the income statement for the year?

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 2

1. Not correct
2. Correct – computer should be NCA & ink cartridges should be Expenses
3. Not correct
4. Not correct

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

A trader provided the following information.

What was the purchases ledger control account balance on 31 March?

Select ONE answer:

1. £7,000
2. £9,000
3. £11,000
4. £13,000

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 1

1. Correct = 4 + 53 – 2-47-1
2. Not correct
3. Not correct
4. Not correct

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

What are the sources of information for entries in control accounts?

Select ONE answer:

1. bank statements
2. books of prime entry
3. ledger accounts
4. sales invoices

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

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