Accounting Multiple Choice Question – 17 September 2020

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

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Which accounting objective is being applied when financial information affects business decisions?

Select ONE answer:

  1. comparability
  2. relevance
  3. reliability
  4. understandability

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. Correct
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 16 September 2020

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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What is the going concern principle?

Select ONE answer:

  1. Accounting records are prepared assuming that the business will continue to operate in the foreseeable future.
  2. Income and expense should be accounted for in the same way they were accounted for in previous periods.
  3. Profit should not be anticipated and losses should be written off as soon as they are known.
  4. Revenue and costs should be recognised as they are earned or incurred, not when the money is received or paid.

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 – 15 September 2020

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

Which one of the costs below is normally classified as an indirect cost?

Select ONE answer:

  1. carriage inwards
  2. factory rent
  3. production materials
  4. production wages

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 – 14 September 2020

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A club provided the following information at the end of its financial year:

  1. rent of premises paid in advance
  2. outstanding subscriptions from members

Where will these items appear in the club’s statement of financial position?

Select ONE answer:

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 – 13 September 2020

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A club provided the following information for the year 2019.

  • Receipts = £21,600
  • Payments = £20,000
  • Depreciation charge for the year = £1,250
  • Accumulated fund at the year end 2019 = £15,800

There were no accruals and prepayments and there had been no capital expenditure or capital receipts.

What was the accumulated fund at the start of the year (end of 2018)?

Select ONE answer:

  1. £60,000
  2. £70,000
  3. £90,000
  4. £100,000

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – £150k – £90k = £60k therefore £160k – £60k = £100k

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