Tag: Bookkeeping

Accounting Multiple Choice Question – 15 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 Trading Ltd has opening trade payables of £24,183 and closing trade payables of £34,655.

Purchases for the period totalled £254,192 (£31,590 relating to cash purchases).

Total payments recorded in the payables ledger for the period were?

Select ONE answer:

  1. £212,130
  2. £233,074
  3. £243,720
  4. £264,664

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 – Bal b/d CR £24,817 + CR Purchases (£254,192 – £31,590) – Bal c/d DR £34,655 == > Payments = £212,130
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 14 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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The double entry to record a settlement or cash discount granted by a supplier is?

Select ONE answer:

  1. Debit Payables, Credit Discounts allowed
  2. Debit Payables, Credit Discounts received
  3. Debit Discounts received, Credit Payables
  4. Debit Discounts allowed, Credit Payables

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

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Accounting Multiple Choice Question – 13 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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The VAT account in Alex Trading Ltd’s nominal ledger currently shows output tax and input tax for the quarter at £228,816 and £176,949, respectively.

A detailed review of the account highlights the following matters:

£8,301 of VAT on invoices received has been posted to output tax
VAT of £3,606 on sales has been posted to the debit of the VAT account

The correct amount payable to HM Revenue and Customs is?

Select ONE answer:

  1. £47,172
  2. £35,265
  3. £59,079
  4. £42,477

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 – VAT Balance is as follows: Dr Input tax £176,949 + Dr Purchases (£8,301 * 2) £16,602 = £193,551 == > Cr Output Tax £228,816 + Cr Sales (£3,606 * 2) £7,212 = £236,028 == > The difference is £42,477

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Accounting Multiple Choice Question – 12 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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In double-entry bookkeeping, which of the following statements is TRUE?

Select ONE answer:

  1. Credit entries decrease liabilities and increase income
  2. Debit entries decrease income and increase assets
  3. Credit entries decrease expenses and increase assets
  4. Debit entries decrease expenses and increase assets

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

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Accounting Multiple Choice Question – 11 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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What transaction is represented by the double-entry:

  • debit rent (expense) and credit landlord (current liability)?

Select ONE answer:

  1. The receipt of rental income by the business
  2. The issue of an invoice for rent to a tenant
  3. The receipt of an invoice for rent payable by the business
  4. The payment of rent by 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

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