Tag: A-Level

The bank statement of a business showed a bank overdraft of £1,640 on 1 August 2020.

At that date there were uncredited deposits of £380 and un-presented cheques of £460.

What was the cash book balance on 1 August 2020?

Select ONE answer:

1. £1,560 credit
2. £1,560 debit
3. £1,720 credit
4. £1,720 debit

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 = -£1,640 -£460 + £380
4. Not correct

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Tracey runs a clothing store. She sold a computer with a net book value of £2,000 for £1,800. Cash was received but no entries had been made in any accounts.

What is the effect of correcting this error on the statement of financial position?

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
4. Not correct

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

Which error will be revealed by the preparation of a trial balance?

Select ONE answer:

1. an amount recorded twice as a debit entry
2. a capital expenditure item treated as revenue expenditure
3. a double entry made using an incorrect amount
4. a transaction completely omitted from the books

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 – error of principle
3. Not correct – error of wrong amount
4. Not correct – error of omission

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

What is a trial balance?

Select ONE answer:

1. a list of balances in a business’s books on a certain date
2. a list of the assets, liabilities and capital of a business on a certain date
3. a summary of all a business’s transactions for the year
4. a summary of the financial position of a business at the year end

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.

Which one of the choices below is part of the double entry system?

Select ONE answer:

1. cash book
2. general journal
3. sales journal
4. trial balance

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.