Accounting Multiple Choice Question – 19 September 2022

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

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Inventory should be valued at the lower of cost and net realisable value.

The table shows data about four products.

  • Product W – Cost £18 & Realisable Value £15 & Selling Expenses £0
  • Product X – Cost £19 & Realisable Value £28 & Selling Expenses £3
  • Product Y – Cost £17 & Realisable Value £17 & Selling Expenses £2
  • Product Z – Cost £23 & Realisable Value £26 & Selling Expenses £3

At how much should the total stocks be valued?

Select ONE answer:

  1. £72
  2. £77
  3. £78
  4. £86

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 – £15 + £19 + £15 + £23
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 18 September 2022

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

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How should goodwill be treated in the accounts of a limited company?

Select ONE answer:

  1. Goodwill should always be written off immediately.
  2. Non-purchased goodwill is shown in the balance sheet.
  3. Purchased goodwill remains on the balance sheet as a permanent item.
  4. Purchased goodwill is shown in the balance sheet and written off over its useful life.

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

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Accounting Multiple Choice Question – 17 September 2022

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

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A draft Balance Sheet shows a bank balance of £1,400.

The following information is now available.

  • cheques issued but not yet cleared by the bank – £150
  • bank charges not in the cash book – £45
  • lodgements in the cash book but not on the bank statement – £220

What is the figure shown on the Bank Statement?

Select ONE answer:

  1. £1,285
  2. £1,355
  3. £1,425
  4. £1,515

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 – £1,400 + £150 – £220 – £45
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 16 September 2022

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

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The closing balance on a Purchases Ledger Control account is £163,762.

The purchase day book (journal) or book of prime entry has been undercast by £1,000.

What should be the correct closing balance on the Purchases Ledger Control account?

Select ONE answer:

  1. £162,762
  2. £163,762
  3. £164,762
  4. £165,762

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 – £163,762 + £1,000
  4. Not correct

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Accounting Multiple Choice Question – 15 September 2022

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

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Lucy Ltd has calculated a draft net profit of £56,750.

They then discover the following mistakes:

Discounts Received of £580 and Discounts Allowed of £665 have been recorded on the wrong sides of the respective Discounts Received and Allowed accounts.

What is the corrected draft net profit for Lucy Ltd?

Select ONE answer:

  1. £56,580
  2. £56,665
  3. £56,835
  4. £56 920

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 – £56,750 + (£580 * 2) – (£665 * 2)
  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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