Tag: Cambridge Assessment

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.

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

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.

Accounting Multiple Choice Question – 11 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
Photo by Serpstat on Pexels.com

What transaction is represented by the double-entry:

  • debit rent (expense) and credit landlord (current liability)?

Select ONE answer:

  1. The receipt of rental income by the business
  2. The issue of an invoice for rent to a tenant
  3. The receipt of an invoice for rent payable by the business
  4. The payment of rent by the business

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 – 10 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
Photo by Serpstat on Pexels.com

Alex is a VAT registered trader whose sales and purchases carry VAT at the standard rate of 20%.

Alex sells a customer goods on credit for £5,000 exclusive of VAT.

The double entry to record this transaction in Alex’s book is?

Select ONE answer:

  1. Debit Sales £5,000, Debit VAT £1,000 and Credit Receivables £6,000
  2. Debit Sales £4,000, Debit VAT £1,000 and Credit Receivables £5,000
  3. Debit Receivables £6,000 and Credit Sales £5,000, Credit VAT £1,000
  4. Debit Receivables £5,000 and Credit Sales £4,000, Credit VAT £1,000

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 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.