Accounting Multiple Choice Question – 17 August 2019

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

The Sales Journal is commonly known as…?

Select ONE answer:

  1. sales invoice.
  2. the sales daybook.
  3. the sales ledger.
  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 2

  1. Incorrect – Sales invoices are the source documents which are recorded in the sales journal.
  2. Correct
  3. Incorrect – The sales ledger is the section of the accounting records where the accounts for individual debtors are maintained.
  4. Incorrect

 

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

Accounting Multiple Choice Question – 16 August 2019

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

The total of the discount allowed column in the cash book should be posted to…?

Select ONE answer:

  1. the debit side of the discount allowed account.
  2. the debit side of the discount received account.
  3. the credit side of the discount allowed account.
  4. the credit side of the discount received 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. The total of the discount allowed column should be posted to the discount allowed account.
  3. This is the correct account but the wrong side of the account.
  4. As for answer 2 above.

 

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

Accounting Multiple Choice Question – 15 August 2019

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

Cash discount (also known as settlement discount) received is…?

Select ONE answer:

  1. deducted from the amount payable by debtors when money is received from them.
  2. given by a firm to its customers when it sells goods on credit.
  3. deducted by a firm when it pays its creditors.
  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. Any amount of discount deducted from the amount payable by debtors when money is received from them is cash discount allowed.
  2. Discount given by a firm to its customers at the time of sale is a trade discount. A cash discount is allowed at the time of payment.
  3. Correct
  4. Not correct

 

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

Accounting Multiple Choice Question – 14 August 2019

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

Cash discount allowed (also known as settlement discount allowed) to a customer means that the customer is entitled to pay less than the full amount he owes…?

Select ONE answer:

  1. only if payment is made within an agreed time period.
  2. only if payment is made in cash, not by cheque.
  3. only if payment is made either in cash or by cheque.
  4. only if goods, or other items, are purchased for cash, not on credit.

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. Cash discount allowed to a customer means that the customer is entitled to pay less than the full amount he owes once payment is made within an agreed time period. Payment may be made in any form, for example, cash, cheque or credit transfer.
  3. As for answer 2 above.
  4. A cash discount is a reduction in the sum to be paid once payment is made within an agreed period. Obviously, if purchases are made for cash, that is, paid for immediately, payment is made on time. However, purchase invoices, arising from credit purchases, may also be paid on time.

 

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

Accounting Multiple Choice Question – 13 August 2019

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

A £100 debit balance brought down in the cash column of a firm’s Cash Book means that…?

Select ONE answer:

  1. the firm has £100 cash in hand
  2. the amount of cash paid out exceeds the amount of cash received by £100
  3. the total of cash paid out is £100.
  4. the total of cash received is £100.

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. Cash paid out cannot exceed cash received.
  3. The total of cash paid out could be £100 but only if the total of cash received was £200.
  4. The total of cash received could be £100 but only if there was no cash paid out.

 

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

Accounting Multiple Choice Question – 12 August 2019

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

A £200 credit balance brought down in the cash columns of a firm’s cash book means that…?

Select ONE answer:

  1. the firm has spent £200 more cash than it has received.
  2. the firm has £200 cash in hand.
  3. a mistake has been made in the recording of cash.
  4. someone has stolen £200 cash.

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 – A credit balance brought down on the cash columns of a firm’s cash book would indicate that the firm has a negative amount of cash. As this is clearly not possible, a mistake must have been made.
  4. Not correct

 

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

Accounting Multiple Choice Question – 11 August 2019

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

An employee of a music store went to a bank and lodged the previous night’s takings, held overnight in the firm’s safe.

This transaction should be recorded in the store’s Cash Book as……?

Select ONE answer:

    Column to Debit                  Column to Credit

  1.     Cash                                              Bank
  2.     Bank                                             Cash
  3.     Cash                                              Cash
  4.     Bank                                             Bank

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 – Lodging cash on hand increases the bank balance (thus requiring a debit entry to increase the asset of bank) and reduces the cash balance (thus requiring a credit entry to decrease the asset of cash).
  3. Not correct
  4. Not correct

 

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