Accounting Multiple Choice Question – 13 February 2019

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

Which of the following summarised balance sheets (statement of financial position) is correct?

Table 46

 

Select ONE answer:

  1. Business 1
  2. Business 2
  3. Business 3
  4. Business 4

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

  • In accordance with the accounting question, Capital = Assets – Liabilities. The Balance Sheet of Business 1 is the only one where the figure for Capital equals the difference between the total of the assets and the total of the liabilities.
  • £2,000 = (£2,517 + £1,298) – (£1,315 + £500)

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Accounting Multiple Choice Question – 12 February 2019

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

The following information relates to a sole trader

  • Total of all assets at 1 August – £7,300
  • Total of all liabilities at 1 August- £6,500
  • Net profit earned during August – £3,000
  • Capital introduced during August- £4,500
  • Drawings during August – £2,700

Select ONE answer:

  1. £5,000
  2. £5,100
  3. £5,600
  4. £5,900

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

  • Capital = Assets – Liabilities (as per the Accounting Equation)
  • Capital at 1 June = Total Assets at 1 August + Total Liabilities at 1 August i.e. £800 = £7,300 + (-£6,500)
  • Capital at 30 June = Capital at 1 August + Capital introduced during August + Net profit earned during August – Drawing during August i.e. £800 +£4,500 + £3,000 – £2,700 = £5,600

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Accounting Multiple Choice Question – 11 February 2019

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

The following information relates to a sole trader

  • Total of all assets at 1 July – £3,300
  • Total of all liabilities at 1 July – £4,500
  • Net profit earned during July – £2,000
  • Capital introduced during July – £5,000
  • Drawings during July – £1,700

Select ONE answer:

  1. £4,000
  2. £4,100
  3. £4,500
  4. £4,600

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

  • Capital = Assets – Liabilities (as per the Accounting Equation)
  • Capital at 1 July = Total Assets at 1 July + Total Liabilities at 1 July i.e. -£1,200 = £3,300 + (-£4,500)
  • Capital at 31 July = Capital at 1 July + Capital introduced during July + Net profit earned during June – Drawing during July i.e. -£1,200 +£5,000 + £2,000 – £1,700 = £4,100

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Accounting Multiple Choice Question – 10 February 2019

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

The following information relates to a sole trader

  • Total of all assets at 1 June – £2,300
  • Total of all liabilities at 1 June – £2,500
  • Net profit earned during June – £1,000
  • Capital introduced during June – £5,000
  • Drawings during June – £700

Select ONE answer:

  1. £5,100
  2. £5,300
  3. £5,500
  4. £5,600

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

  • Capital = Assets – Liabilities (as per the Accounting Equation)
  • Capital at 1 June = Total Assets at 1 June + Total Liabilities at 1 June i.e. -£200 = £2,300 + (-£2,500)
  • Capital at 30 June = Capital at 1 June + Capital introduced during June + Net profit earned during June – Drawing during June i.e. -£200 +£5,000 + £1,000 – £700 = £5,100

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Accounting Multiple Choice Question – 9 February 2019

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

Categorise the three items below as either “current liabilities” or “long-term liabilities” of a firm as at 31 December 2018 and choose the option 1,2,3 or 4 which correctly categorises all three items.

Item 1 – a bank loan repayable by the firm as a single lump sum on 31 March 2021

Item 2 – an electricity bill relating to November and December 2018 but unpaid as at 31 December 2018, because the bill was not received by the firm until 10 January 2019, at which time it was recorded in the appropriate ledger accounts

Item 3 – The portion of a five-year bank loan due to be paid by the firm in 2019. The loan was taken out on 1 January 2017 and is repayable in equal annual instalments over the term of the loan

Select ONE answer:

Table 45

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

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Accounting Multiple Choice Question – 8 February 2019

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

A firm’s current liabilities, at its balance sheet date, are ……….. ?

Select ONE answer:

  1. its bank overdrafts, if any, and any portions of its long term loans which the firm is due to repay within one year of the balance sheet date
  2. all liabilities which it is due to discharge within one year of that date
  3. any trade creditors which it is due to pay within three months of that date
  4. all liabilities which it incurred in the six months prior to that date

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 – any amount payable by the firm within one year of its balance sheet date is a current liability
3 – any amount payable by the firm within one year of its balance sheet date is a current liability
4 – could have already been discharged before the balance sheet date

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Accounting Multiple Choice Question – 7 February 2019

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

When preparing a firm’s balance sheet, which of the following should be classified as a long-term liability?

Select ONE answer:

  1. An amount payable by the firm within six months of the date of the balance sheet
  2. An amount payable by the firm within nine months of the date of the balance sheet
  3. An amount payable by the firm after more than one year from the balance sheet date
  4. None of the above

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 – would be treated as a current liability
2 – would be treated as a current liability

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