Tag: A-Level

A firm’s current assets are ……….. ?

Select ONE answer:

1. amounts which it is due to receive within one year of its balance sheet date
2. its cash and positive bank balances and other assets likely to be converted into cash and bank balances within one year of its balance sheet date as a result of its normal trading operations
3. the total of its debtors, its stocks and its cash and bank balances
4. amounts which it is due to receive as a result of credit sales made by the firm within the last year

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
3 – current assets can comprise than more than just debtors, stock and cash
4 – current assets can comprise than more than just debtors

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A firm’s fixed assets are ……….. ?

Select ONE answer:

1. all of its assets which have a long life and a substantial value
2. all of its assets which have an expected useful economic life of more than one year, and were purchased in order to be used in the business on a continuing basis rather than solely for resale
3. all assets which have a physical substance
4. none of the above

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 – fixed assets do not have to be of substantial value
3 – fixed assets can be intangible such as patents and trademarks

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The balance sheet of a firm at any particular date is intended to show ……….. ?

Select ONE answer:

1. the nature of the firm’s business at that date
2. the identity of the firm’s owners at that date
3. the financial position of the firm at that date
4. the physical size of the firm at that date

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

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The correct heading for the balance sheet of Conspicuous Ltd at the end of December 2018 is “Balance Sheet of Conspicuous Ltd ……….. ?

Select ONE answer:

1. for the period ended 31 December 2018
2. for the year ended 31 December 2018
3. as at 31 December 2018
4. as at December 2018

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 – a balance sheet shows the financial position of an entity at a particular point of time/date not over a period of time
2 – a balance sheet shows the financial position of an entity at a particular point of time/date not over a period of time
4 – a balance sheet shows the financial position of an entity at a particular point of time/date not over a period of time

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A balance sheet is ……….. ?

Select ONE answer:

1. a ledger account, proving the accounting records “balance”
2. a statement showing the market value of a firm
3. a listing, in a particular format, of the balances brought down remaining in the double-entry accounts after the profit and loss account has been prepared
4. a statement showing the market value of assets and 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 – a balance sheet is not a ledger account
2 – a balance sheet does not show the market value of a firm
4 – A balance sheet does not show the market value of individual assets or liabilities

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