Tag: AQA

At the end of a financial period, a business has the following balances.

What should the business do if it wishes to maintain the bad debt provision at 5 % of debtors?

Select ONE answer:

1. decrease the existing provision by £58
2. increase the existing provision by £58
3. decrease the existing provision by £71 
4. increase the existing provision by £71 

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 ==> £10,620 – £260 = £10,360 * 0.05 = £518 – £460 ==> Increase £58
3. Not correct
4. Not correct

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

An item of capital expenditure has been incorrectly treated as revenue expenditure in the accounts of a business.

What is the effect of this error on the accounts of the business? 

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 4

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

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

A business buys a computer for £2,200 on 1 January 2019.

The computer will be used for four years, after which time it will be sold for £280. The business uses the straight-line method of depreciation. 

What is the depreciation charge for the year ended 31 December 2020?

Select ONE answer:

1. £480
2. £550
3. £960
4. £1,100

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 ==> (£2,200 / 4) – £280 = £480 p.a.
2. Not correct
3. Not correct
4. Not correct

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

An item of capital expenditure has been incorrectly treated as revenue expenditure in the accounts of a business.

What is the effect of this error on the accounts of the business? 

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 4

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

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

Expenditure on a machine during a year has included the following:

What is the capital cost?

Select ONE answer:

1. none
2. £22,300
3. £24,700
4. £31,900

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 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.