Tag: Business Owner

Accounting Multiple Choice Question – 15 October 2024

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

Photo by Nataliya Vaitkevich on Pexels.com

What journal is necessary to record interest payable on partners’ drawings?

Select ONE answer:

  1. Debit Partners’ drawings accounts, Credit Partners’ current accounts
  2. Debit Profit and loss appropriation account, Credit Partners’ drawings accounts
  3. Debit Partners’ drawings accounts, Credit Interest payable account
  4. Debit Partners’ current accounts, Credit Profit and loss appropriation account

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 == >. Interest payable by partners increases the amounts of profits available for appropriation (credit appropriation account) it must be charged against the partners’ current accounts (debit partners’ current accounts).

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

Accounting Multiple Choice Question – 13 October 2024

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

How should interest charged on partners’ drawings be dealt with ni partnership financial statements?

Select ONE answer:

  1. Credited as income in the income statement
  2. Deducted from profit ni allocating the profit among the partners
  3. Added to profit in allocating the profit among the partners
  4. Debited as an expense in the income statement.

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 == > Added to profit in allocating the profit among the partners
  4. Not correct

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

Accounting Multiple Choice Question – 11 October 2024

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

Which of the following assertions about cash flow statements is/are correct?

  1. A cash flow statement prepared using the direct method produces a different figure for net cash flow from operating activities to that produced when the indirect method is used.
  2. Capital introduction do not feature in cash flow statements.
  3. A bonus issue will not appear as an item in a cash flow statement of a sole trader
  4. A profit on the sale of a non-current asset will appear as an item under Capital Expenditure in a cash flow statement.

Select ONE answer:

  1. 1 and 4
  2. 2 and 3
  3. 3 Only
  4. 2 and 4

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.

Accounting Multiple Choice Question – 9 October 2024

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

Photo by Nataliya Vaitkevich on Pexels.com

In the course of preparing a sole trader’s cash flow statement, the following figures are to be included in the calculation of net cash from operating activities.

Depreciation charges – £980,000
Profit on sale of non-current assets – £40,000
Increase in inventory – £130,000
Decrease in accounts receivables – £100,000
Increase in accounts payable – £80,000

What will the net effect of these items be in the cash flow statement?

Select ONE answer:

  1. Addition to operating profit – £890,000
  2. Subtraction from operating profit – £890,000
  3. Addition to operating profit – £1,070,000
  4. Addition to operating profit – £990,000

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – Add depreciation charge == > Less profit on sale of non-current assets == > Less increase in inventory == > Add decrease in accounts receivables == > Add increase in accounts payable = Addition to operating profit

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

Accounting Multiple Choice Question – 8 October 2024

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

Photo by Nataliya Vaitkevich on Pexels.com

Part of the process of preparing a sole trader’s cash flow statement is the calculation of cash inflow from operating activities.

Which of the following statements about that calculation (using the indirect method) are correct?

1 Loss on sale of operating non-current assets should be deducted from operating profits.
2 Increase in inventory should be deducted from operating profits.
3 Increase in accounts payable should be added to operating profits.
4 Depreciation charges should be added to operating profits.

Select ONE answer:

  1. 1, 2 and 3
  2. 1, 2 and 4
  3. 1, 3 and 4
  4. 2, 3 and 4

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 – Loss on sale of NCA should be added back to net operating profits.

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