Accounting Multiple Choice Question – 26 August 2017

The owner of a business has decided to create a provision for doubtful debts.

Which TWO accounting concepts are being applied?

Select ONE answer:

  1. Accruals and going concern
  2. Accruals and prudence
  3. Consistency and business entity
  4. Consistency and prudence
  5. Prudence and business entity

What is the prudence concept?
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This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 2 – The provision is a prudent one and an accrual to ensure it is booked in the right accounting period.

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Accounting Multiple Choice Question – 25 August 2017

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
  5. Consistency

The four fundamental concepts or rules of accounting that should be followed in the preparation of all accounts and financial statements are?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 2 – Business entity as this is a personal expense, not a company expense.

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Accounting Multiple Choice Question – 24 August 2017

A business has received a credit note. What entries should be made in the business’s ledger accounts?

Select ONE answer:

Untitled 2

What is the definition of a credit note?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accouting KS5 classes.

The answer is 3 – Reduction of trade payables on the balance sheet and a credit to the profit and loss account in the purchase returns account.

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