Tag: AQA

When preparing a bank reconciliation statement the following information is available. 

What is the balance on the bank statement?

Select ONE answer:

1. £18,600
2. £19,200
3. £20,800
4. £21,400

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 ==> £20,000 – £2,500 – £1,400 – £300
4. Not correct

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

A company does not include the value of skills gained by its employees from training programmes in its financial statements. 

Which accounting principle is being applied?

Select ONE answer:

1. consistency
2. materiality
3. money measurement
4. substance over form

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

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

When a businessman introduces capital into his business, the transaction is debited in the Cash Book and credited to his Capital account.

Of which accounting principle is this an example?

Select ONE answer:

1. entity
2. going concern
3. matching
4. prudence

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

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

What does the ‘going concern’ principle mean?

Select ONE answer:

1. a business is profitable
2. a business will continue to operate for the foreseeable future
3. the assets of a business exceed its liabilities
4. the assets of a business should be valued at disposal value

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
3. Not correct
4. Not correct

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

A fixed asset is purchased on 1 April 2018 at a cost of £240,000.

It has an estimated residual value of £40,000 at the end of its 5 year life and is to be depreciated on the reducing balance basis at the rate of 30 % each year.

What is the depreciation charge for the year ending 31 March 2020 (to the nearest £)?

Select ONE answer:

1. £42,000
2. £50,400
3. £98,000
4. £11,7600

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 ==> £240,000 * 0.3 = £72,000 ==> £168,000 * 0.3 = £50,400
3. Not correct
4. Not correct

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