Tag: Cambridge Assessment

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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Accounting Multiple Choice Question -27 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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Why do businesses charge depreciation on their non-current assets?

Select ONE answer:

  1. to ensure that sufficient cash is available to replace the assets
  2. to show the realisable value of the assets in the statement of financial position
  3. to show when the assets must be replaced
  4. to spread the cost of the assets over their estimated useful lives

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 – 22 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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Which item should be treated as capital expenditure?

Select ONE answer:

  1. cost of carriage on the purchase of a non-current asset
  2. cost of replacement of part of a non-current asset
  3. depreciation of a non-current asset
  4. repairs to a non-current asset

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 – 21 September 2023

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

Photo by Olya Kobruseva on Pexels.com

Alex ltd is considering buying equipment at a cost of £80,000.

This equipment will save £40,000 per annum in operating costs over the next three years, after which it will have no scrap value.

Using the following discount factors:

  • year 0 – 1.000
  • year 1 – 0.909
  • year 2 – 0.826 
  • year 3 – 0.751

What is the net present value of the equipment?

Select ONE answer:

  1. £(10,600)
  2. £19,440
  3. £40,000
  4. £99,440

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 = -£80k + (£40k *0.909) + (£40k * 0.826) + (£40k * 0.751)
  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 – 20 September 2023

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

Photo by Olya Kobruseva on Pexels.com

What would NOT be included in a net present value (NPV) capital investment appraisal?

Select ONE answer:

  1. any expenditure incurred after the payback period
  2. depreciation of capital expenditure
  3. increase in working capital
  4. residual value of the capital cost

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.