Tag: Accountants

Accounting Multiple Choice Question – 3 March 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex Trading plc purchases a machine for £15,000 on 1 January 2023.

After incurring transportation costs of £1,300 and spending £2,500 on installing the machine, it breaks down and costs £600 to repair.

Depreciation is charged at 10% per annum.

At what carrying amount will the machine be shown in Alex Trading plc’s statement of financial position at 31 December 2023?

Select ONE answer:

  1. £13,500
  2. £14,670
  3. £16,920
  4. £18,800

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 – Cost (15,000 + 1,300 + 2,500) = £18,800 == > Depreciation (10% x £18,800) == > Carrying amount £16,920
  4. Not correct

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Accounting Multiple Choice Question – 26 February 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex the sole trader had receivables of £2,700 as at 1 December and during December made cash sales of £7,200, credit sales of £16,500 and received £15,300 from his credit customers.

The balance on Alex’s receivables account at the end of December was?

Select ONE answer:

  1. £1,500
  2. £3,900
  3. £8,700
  4. £11,100

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 – Bal b/d £2,700 + £16,500 credit sales – £15,300 payments = £3,900
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 22 February 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The following are all current assets

  • trade receivables, inventories, prepaid expenses and cash at bank

Which of them is the least liquid?

Select ONE answer:

  1. Trade receivables
  2. Inventories
  3. Prepaid expenses
  4. Cash at bank

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

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

Accounting Multiple Choice Question – 19 February 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Photo by Olya Kobruseva on Pexels.com

What is the correct treatment of a trade discount received from a credit supplier?

Select ONE answer:

  1. Recorded in the purchases daybook
  2. Deducted from the list price with the net amount recorded in the purchases daybook
  3. Recorded in the journal
  4. Deducted from the invoice total with the net amount recorded in the cash book

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

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

Accounting Multiple Choice Question – 17 February 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Photo by Olya Kobruseva on Pexels.com

What is the correct double entry for the posting of the discounts received column in the cash payments book / cashbook?

Select ONE answer:

  1. Debit Discounts received, Credit Receivables
  2. Debit Payables, Credit Discounts received
  3. Debit Receivables, Credit Discounts received
  4. Debit Discounts received, Credit Payables

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

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