Tag: Accounting Equation

Accounting Multiple Choice Question – 29 January 2024

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

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Which of the following is a book of prime or original entry?

Select ONE answer:

  1. Nominal ledger
  2. General Journal or Journal
  3. Receivables ledger
  4. Asset register

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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Accounting Multiple Choice Question – 28 January 2024

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

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Which of the following best explains the imprest (set amount) system of petty cash?

Select ONE answer:

  1. Each month an equal amount of cash is transferred into petty cash
  2. The exact amount of petty cash expenditure is reimbursed at intervals to maintain a fixed float
  3. Petty cash must be kept under lock and key
  4. The petty cash total must never fall below the imprest amount

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 – 25 January 2024

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

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Which THREE of the following are elements of financial statements as identified by the IASB’s Conceptual Framework?

  • A.Income
  • B.Expenses
  • C.Profits
  • D.Losses
  • E.Obligations
  • F.Resources
  • G.Equity

Select ONE answer:

  1. A, B & C
  2. E, F & G
  3. A, B & G
  4. D, E & F

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 – According to the IASB’s Conceptual Framework, income, expenses and equity are elements of financial statements.
  4. Not correct

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

Accounting Multiple Choice Question – 24 January 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 owner of Alex Trading increased his business’s total number of motor vehicles by adding his own car to the fleet for exclusive use by the business.

Which elements of the accounting equation will change due to this transaction?

Select ONE answer:

  1. Assets only
  2. Capital only
  3. Assets and capital
  4. 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. Not correct
  2. Not correct
  3. Correct – The car increases assets while it is treated as capital introduced to Alex trading rather than as a liability of the business to its proprietor.
  4. Not correct

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

Accounting Multiple Choice Question – 23 January 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

Alex Trading sells goods for cash for £1,000, which had cost them £500 to purchase.

Which elements of the accounting equation for Alex Trading will change due to this transaction?

Select ONE answer:

  1. Assets and liabilities
  2. Assets and capital
  3. Capital and liabilities
  4. Assets 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 2

  1. Not correct
  2. Correct – Assets will increase as there is an increase in cash of £1,000 and a decrease in inventory of only £500, and Alex’s capital will increase due to the profit made of £500 (£1,000 – £500).
  3. Not correct
  4. Not correct

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