Tag: Business Entity

Accounting Multiple Choice Question – 24 January 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 owner of Alex Trading increased his business’s total number of motor vehicles by adding his own car to the fleet for exclusive use by the business.

Which elements of the accounting equation will change due to this transaction?

Select ONE answer:

  1. Assets only
  2. Capital only
  3. Assets and capital
  4. Assets and liabilities

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 – The car increases assets while it is treated as capital introduced to Alex trading rather than as a liability of the business to its proprietor.
  4. Not correct

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Accounting Multiple Choice Question – 30 December 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 capital balance of Alex Trading, who is a sole trader, would change as a result of?

Select ONE answer:

  1. A credit customer paying by cheque
  2. Raw materials being purchased on credit
  3. Non-current assets being purchased on credit
  4. A personal petrol expense of Alex being paid for out of the business’s petty cash

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 – 28 September 2023

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

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When a businessman introduces capital into his business, the transaction is debited in the cash book and credited to his capital account.

Of which accounting principle is this an example?

Select ONE answer:

  1. business entity
  2. going concern
  3. matching
  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 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 – 15 June 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 owner of a business paid for his family’s holiday from the business bank account and recorded the payment as drawings.

Which accounting concept is being applied?

Select ONE answer:

  1. Accruals
  2. Business Entity
  3. Going concern
  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 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.