Tag: Bookkeeping

Accounting Multiple Choice Question – 4 August 2023

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

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At the year-end a cash book shows a credit balance of £4,800.

The bank statement included bank charges of £25 which had not been included in the cash book.

Cheque payments entered in the cash book before the year end to the value of £250 had not yet cleared the bank.

How would the bank balance be shown in the statement of financial position?

Select ONE answer:

  1. current asset £4,775
  2. current liability £4,825
  3. current asset £5,025
  4. current liability £5,075

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 – £4,800 + £25
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 3 August 2023

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

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The following debit balance appears on a trial balance after preparing the manufacturing account for the year.

  • loose tools £18,000

What is this item?

Select ONE answer:

  1. a creditor for loose tools
  2. the annual charge for loose tools
  3. a prepayment for loose tools
  4. stock of loose tools

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

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Accounting Multiple Choice Question – 2 August 2023

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

Photo by Olya Kobruseva on Pexels.com

Which transaction applies the matching or accruals concept?

Select ONE answer:

  1. a machine acquired on long-term rental is included in fixed assets
  2. computer equipment is depreciated over two years
  3. a building is revalued following a fall in property prices
  4. a waste-paper basket is treated as revenue expenditure

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

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

Accounting Multiple Choice Question – 1 August 2023

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

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A company has two fixed assets. Details are given in the table.

  • Asset X: date bought 1 Jan Year 1, cost £10,000, depreciation method 5 years straight-line, residual value £2,000
  • Asset Y: date bought 1 Jan Year 1, cost £20,000, depreciation method 20% reducing balance, residual value £NIL

What is the depreciation charge for the year ended 31 December, Year 2?

Select ONE answer:

  1. £4,800
  2. £5,200
  3. £5,600
  4. £6,000

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 – X = £10k – £2k / 5 = £1.6k; Y = (£20k – £4k) * 20% = £3.2 == > £4.8k
  2. Not correct
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 31 July 2023

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

Photo by Olya Kobruseva on Pexels.com

A trial balance at 30 June, before making end of year adjustments, showed:

  • Debit – trade debtors £35,600
  • Credit – provision for doubtful debts £1,160

At 30 June, it was decided to write off a bad debt of £1,600 and to make a provision for doubtful debts equal to 2 % of trade debtors.

What was the total expense in the profit and loss account for bad and doubtful debts for the year ended 30 June?

Select ONE answer:

  1. £680
  2. £1,120
  3. £2,080
  4. £2,280

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 – -> £1,600 – (£1,160 – £680)
  3. Not correct
  4. Not correct

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