Tag: AQA

Accountants prefer the commercial reality of a transaction to a strictly legal approach.

This is an example of…?

Select ONE answer:

1. consistency.
2. materiality.
3. prudence.
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 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.

Stock which cost £2,400 has been damaged. It would have sold for £3,600 when perfect. It can be sold for £3,400 if repairs are undertaken at a cost of £1,200. To replace the stock would cost £2,000.

At what value should the damaged stock be shown in the final accounts?

Select ONE answer:

1. £2,000
2. £2,200
3. £2,400
4. £3,600

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

1. Not correct
2. Correct – £3,400 – £1,200
3. Not correct
4. Not correct

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

The accountant of a computer software business has decided not to include subscriptions owing by customers in the Balance Sheet at the year-end.

Which accounting concept is being applied?

Select ONE answer:

1. accruals
2. going concern
3. money measurement
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 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 company’s accounts showed a gross profit for the year of £65,000.

After the accounts were prepared it was found that the opening stock had been overstated by £4,800 and the closing stock had been understated by £6,800.

What is the corrected gross profit for the year?

Select ONE answer:

1. £53,400
2. £63,000
3. £67,000
4. £76,600

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – £65,000 + £4,800 + £6,800

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

Which of the following is a tangible fixed asset?

Select ONE answer:

1. patents
2. purchased Goodwill
3. short leasehold
4. trade marks

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.