Tag: Accounting Concepts

Accounting Multiple Choice Question – 2 August 2023

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

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Which transaction applies the matching or accruals concept?

Select ONE answer:

  1. a machine acquired on long-term rental is included in fixed assets
  2. computer equipment is depreciated over two years
  3. a building is revalued following a fall in property prices
  4. a waste-paper basket is treated as revenue expenditure

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

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

Accounting Multiple Choice Question – 15 June 2023

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

The owner of a business paid for his family’s holiday from the business bank account and recorded the payment as drawings.

Which accounting concept is being applied?

Select ONE answer:

  1. Accruals
  2. Business Entity
  3. Going concern
  4. Prudence

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 – 14 June 2023

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

Alex plc buys items for resale at a cost of £15 per unit.

They are normally sold for £22.

A damaged unit can only be sold at the normal selling price after modifications costing £14 are made by Alex plc.

The scrap value of the item is £7 per unit.

How much should the damaged unit be valued at in the balance sheet?

Select ONE answer:

  1. £7
  2. £8
  3. £14
  4. £15

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 correc
  2. Correct – Lower of cost and NRV = = > Cost £15 vs NRV (£22 – £14) of £8
  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 – 7 June 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

Which accounting treatments illustrate the use of the matching principle?

  1. valuation of stock at net realisable value rather than cost
  2. using the First In First Out method of valuation each year
  3. charging depreciation on fixed assets

Select ONE answer:

  1. 1, 2 and 3
  2. 1 and 3 only
  3. 2 only
  4. 3 only

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
  2. Not correct
  3. Not correct
  4. Correct

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

Accounting Multiple Choice Question – 6 June 2023

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

Alex buys a stapler for his business at a cost of £10 and the retailer estimates that it has a useful life of 5 years.

The bookkeeper has decided to treat the purchase of the calculator as revenue expenditure instead of capital expenditure.

Which accounting principle / concept has been applied?

Select ONE answer:

  1. accruals
  2. materiality
  3. prudence
  4. Money Measurement

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.