Tag: Cambridge Assessment

Accounting Multiple Choice Question – 3 December 2023

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

A shareholder sells some ordinary shares for more than he paid for them.

What is the effect on the company statement of financial position?

Select ONE answer:

  1. ordinary share capital – Decrease and share premium account – Decrease
  2. ordinary share capital – Decrease and share premium account – Increase
  3. ordinary share capital – No effect and share premium account – Decrease
  4. ordinary share capital – No effect and share premium account – No effect

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 – 1 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 directors of Alex Ltd provide the following information to you.

  • bank overdraft – £1,200
  • equipment – £12,000
  • long term loan – £8,000
  • petty cash – £900
  • Inventory – £2,500
  • trade payables – £3,000
  • Trade receivables – £2,000

What is the amount of the net current assets?

Select ONE answer:

  1. £1,200
  2. £2,400
  3. £3,600
  4. £5,200

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 – £2,500 + £2.000 + £900 – £3,000 – £1,200
  2. Not correct
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 24 November 2023

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

Photo by Pixabay on Pexels.com

Alex Trading Supplies sells some of its inventory for £500 on credit to a customer.

The inventory originally cost £600.

What is the effect of this transaction on the statement of financial position?

Select ONE answer:

  1. current assets – decrease by £100 and owner’s capital – decrease by £100
  2. current assets – decrease by £100 and owner’s capital – increase by £100
  3. current assets – increase by £100 and owner’s capital – decrease by £100
  4. current assets – increase by £100 and owner’s capital – increase by £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 1

  1. Correct
  2. Not correct
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 23 November 2023

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

Who is most likely to use the payables ledger?

Select ONE answer:

  1. cashier
  2. credit controller
  3. trade payables
  4. purchases controller

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

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