Accounting Multiple Choice Question – 4 December 2021

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

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A business does not keep proper accounting records.

The following information is available at the start of the year.

  1. a motor car valued at £2,500
  2. stocks which cost £4,000 with a sale value of £6,000
  3. bank overdraft of £500
  4. a loan to a friend from the business bank account £1,000

What is the Capital account balance at the start of the year?

Select ONE answer:

  1. £5,000
  2. £7,000
  3. £8.000
  4. £9,000

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 ==> £2,500 + £4,000 – £500 + £1,0000
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 3 December 2021

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

apple devices books business coffee
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A company has two items in stock which require to be repaired before sale.

  cost £   selling price £   repair costs £

item 1   5 260   7 600   880

item 2   2 360   2 450   190

What is the total stock value of these items?

Select ONE answer:

  1. £6,550
  2. £7,520
  3. £7,620
  4. £8,980

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 ==> £5,260 +(£2,450 – £190 Lower of cost or NRV)
  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 – 2 December 2021

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

apple devices books business coffee
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The wages of staff employed in getting goods into a saleable condition have been debited in the Profit and Loss Account.

What is the effect of this error?

Select ONE answer:

  • Gross profit – overstated / Net profit – no effect
  • Gross profit – overstated / Net profit – overstated
  • Gross profit – understated / Net profit – no effect
  • Gross profit – understated / Net profit – understated

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

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

Accounting Multiple Choice Question – 1 December 2021

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

apple devices books business coffee
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How may net profit be calculated?

Select ONE answer:

  1. Closing Capital + Drawings – Additional Capital – Opening Capital
  2. Closing Capital – Drawings + Additional Capital – Opening Capital
  3. Opening Capital + Drawings – Additional Capital – Closing Capital
  4. Opening Capital – Drawings – Additional Capital – Closing Capital

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

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

Accounting Multiple Choice Question – 30 November 2021

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

apple devices books business coffee
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Motor vehicles purchased for £530 000 at the start of the year have been incorrectly depreciated for the whole year using the straight line method at 10% instead of 25%.

Ledger balances after the entries have been posted:

  • motor vehicles at cost £530 000
  • provision for depreciation £53 000

Which entries will correct the error?

Select ONE answer:

  1. debit Profit & Loss £79 500; credit Provision for Depreciation of Motor Vehicles £79 500
  2. debit Profit & Loss £132 500; credit Provision for Depreciation of Motor Vehicles £132 500
  3. debit Provision for Depreciation of Motor Vehicles £79 500; credit Profit & Loss £79 500
  4. debit Provision for Depreciation of Motor Vehicles £132 500; credit Profit & Loss £132 500

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 – Dr I/S Cr B/S Provision ==> £530k * 0.25 ==> £132.5 – £53k ==> £79.5 debit P&L
  2. Not correct
  3. Not correct
  4. Not correct

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

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