Tag: Cambridge Assessment

Accounting Multiple Choice Question – 21 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 is registered for VAT and received the following invoice from one of its VAT registered suppliers:

20 December 2023

Goods: 100 @£10 = £1,000
Less: Trade discount (£50)
Total: £950

A further discount of £50 will be allowed if payment is received within 14 days.

What amount of VAT should have been charged on the invoice?

Select ONE answer:

  1. £157.50
  2. £166.25
  3. £175.00
  4. £183.75

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 – (950 – 50) x 17.5% = £157.50. Remember that for VAT discount will be claimed back.
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 20 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 is the correct double entry for discounts allowed?

Select ONE answer:

  1. Debit Discounts allowed & Bank, Credit Receivables
  2. Debit Discounts allowed & Bank, Credit Payables
  3. Debit Receivables, Credit Discounts allowed & Bank
  4. Debit Payables, Credit Discounts allowed & Bank

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 – 18 February 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
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Which of the following could be a debit entry in the payables account?

Select ONE answer:

  1. Purchases daybook total
  2. Cash purchases total
  3. Payables ledger total in the cash book
  4. Discounts allowed total from cash book

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

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