Accounting Multiple Choice Question – 9 June 2021

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

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The directors of a company are completing the accounts for the year ended 30 April 2020.

They discover that the stock at 1 May 2019 was over-valued by £50,000.

What is the effect of correcting this error in the accounts?

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 3

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

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Accounting Multiple Choice Question – 8 June 2021

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

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Which item will be included in a Balance Sheet as a creditor?

Select ONE answer:

  1. loan stock issued by a company
  2. preference shares issued by a company
  3. revaluation reserve
  4. share Premium account

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 – 7 June 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 club charges each of its 100 members an annual subscription of £12.

At the end of a year four members had not paid their annual subscription. 

What will be the entries in the financial statements for subscriptions?

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 3

  1. Not correct
  2. Not correct
  3. Correct ==> 100 * £12 = £1,200 / 4 * £12 = £48 Asset
  4. Not correct

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

Accounting Multiple Choice Question – 6 June 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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An item of revenue expenditure has been incorrectly treated as capital expenditure in the accounts of a business.

What effect will the correction of this error have on the accounts? 

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

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

Accounting Multiple Choice Question – 5 June 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 trial balance does not balance.

The difference has been entered in a Suspense account. 

The following errors are found below.

What is the correcting debit entry to the Suspense account?

Select ONE answer:

  1. £47,340
  2. £95,010
  3. £95,640
  4. £97,560 

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 ==> £48,300 * 2 – £960 ==> No 3 is ignored as the debit is simply a reclassification manner
  4. Not correct

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