Tag: AQA

What are assets?

Select ONE answer:

1. items that are bought for long-term use by a business
2. items that are expected to be turned into cash in the near future
3. items that are owned by or owed by a business
4. items that are owned by or owed to a business 

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 – only non-current assets
2. Not correct – prepayments cannot be turned into cash
3. Not correct – includes creditors
4. Correct

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What is the purpose of book-keeping?

Select ONE answer:

1. to interpret the double entry records
2. to prepare financial statements at regular intervals
3. to record all the financial transactions of the business
4. to summarise the financial position of the business

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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Shareholders must be provided with the financial statements of any company in which they own shares because . . .?

Select ONE answer:

1. of the provisions of the Companies Acts.
2. of regulations issued by the Stock Exchange.
3. of regulations issued by the Accounting Standards Board (ASB).
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 1

1. Correct
2. Not correct – Stock Exchange regulations apply only to companies whose shares are listed on the Exchange.
3. Not correct – Regulations issued by the Accounting Standards Board relate to the preparation of financial statements, not to their dissemination / publication.
4. Not correct

 

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The format in which the financial statements of UK registered limited companies must be published is prescribed by . . .?

Select ONE answer:

1. Statements of Standard Accounting Practice (SSAPs).
2. The UK Companies Acts.
3. Financial Reporting Standards (FRSs).
4. The Companies Registration Office.

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 – The format of company financial statements throughout the EU was prescribed in the EC fourth directive on company law. This directive required all member states to issue national legislation containing the provisions of the directive. As a result. all member states now have legislation in place governing the format and content of the financial statements of companies.
3. Not correct
4. Not correct

 

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Prior to issuing a Financial Reporting Standard, the old Accounting Standards Board would normally issues a ‘draft’ with a view to obtaining comments on the proposed Standard.  Such a ‘draft‘ document were referred to as . . .?

Select ONE answer:

1. an Exposure Draft.
2. an Example Draft.
3. an Explanation Draft.
4. a Financial Reporting Exposure Draft (FRED).

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 – An Exposure Draft (ED) is what was issued prior to issuing a Statement of Standard Accounting Practice (SSAP). Such EDs are no longer issued as SSAPs are no longer issued.
2. Not correct – There is no such document in accounting.
3. Not correct – There is no such document in accounting.
4. Correct

 

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