Tag: Bookkeeping

Accounting Multiple Choice Question – 1 March 2024

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

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Alex Trading plc is a retailer which is registered for VAT.

All sales, and all purchases of goods for resale, attract VAT at the rate of 20%.

For the year to 31 December 2023 Alex Trading plc paid £68,150 to suppliers in respect of goods for resale and showed revenue in the income statement of £89,300 net of VAT.

There was no change in the figures for inventory and trade payables in the statements of financial position as at 31 December 2022 and 2023.

What was Alex Trading plc’s gross profit for the year ended 31 December 2023?

Select ONE answer:

  1. £21,150
  2. £7,850
  3. £39,300
  4. £18,000

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 3

  1. Not correct
  2. Not correct
  3. Correct – £89,300 – (£60,000 / 1.2)
  4. Not correct

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Accounting Multiple Choice Question – 29 February 2024

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

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Which of the following statements concerning the extended trial balance is correct?

Select ONE answer:

  1. If the initial trial balance balances an error may still have been made
  2. The closing inventories balance is included in the initial trial balance
  3. The owner’s drawings taken in the period are shown in the adjustments columns of the extended trial balance
  4. Non-current assets appear in the credit column of the statement of financial position

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

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Accounting Multiple Choice Question – 28 February 2024

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

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Which of the following would be a credit balance in the trial balance?

Select ONE answer:

  1. Bank overdraft
  2. Drawings
  3. Discounts allowed
  4. Carriage outwards

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

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

Accounting Multiple Choice Question – 27 February 2024

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

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Which ONE of the following types of account would normally appear on the debit side of the trial balance?

Select ONE answer:

  1. Liability
  2. Income
  3. Capital
  4. Expense

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

Accounting Multiple Choice Question – 26 February 2024

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

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Alex the sole trader had receivables of £2,700 as at 1 December and during December made cash sales of £7,200, credit sales of £16,500 and received £15,300 from his credit customers.

The balance on Alex’s receivables account at the end of December was?

Select ONE answer:

  1. £1,500
  2. £3,900
  3. £8,700
  4. £11,100

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 2

  1. Not correct
  2. Correct – Bal b/d £2,700 + £16,500 credit sales – £15,300 payments = £3,900
  3. Not correct
  4. Not correct

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