Tag: Cambridge Assessment

Accounting Multiple Choice Question – 24 February 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 cost of a new machine has been debited to the repairs account.

What error is this an example of?

Select ONE answer:

  1. commission
  2. omission
  3. principle
  4. reversal of entries

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

Accounting Multiple Choice Question – 23 February 2023

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

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A company changes from the straight-line method of depreciation to the reducing balance method.

Which accounting principle has not been applied?

Select ONE answer:

  1. consistency
  2. going concern
  3. historic cost
  4. materiality

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 – 22 February 2023

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

An item of stock originally cost £5,000, but has deteriorated badly and is written down to its estimated net realisable value of £2,000.

Which accounting principle has been applied?

Select ONE answer:

  1. consistency
  2. materiality
  3. prudence
  4. Money measurement

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 – 21 February 2023

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

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A trial balance shows:

        Dr accounts receivable £28,000

                        Cr provision for doubtful debts £1,200

£2,100 of the outstanding invoices are irrecoverable and are to be written off.

The owner of the business wishes to make the provision for doubtful debts equal to 5 % of his outstanding customer invoices.

What is the amount debited to the income statement for the provision for doubtful debts?

Select ONE answer:

  1. £95
  2. £1,295
  3. £1,400
  4. £2,600

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 – £28,000 – £2,100 * 0.05 = £1,295 – £1,200 == > £95 increase
  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 – 20 February 2023

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

On 1 October 2014 a company purchased machinery for £26,000.

It was decided to depreciate the asset using the reducing balance method at a rate of 20 % per annum.

On 30 September 2016 the asset was sold for £12,000.

What is the profit or loss on disposal?

Select ONE answer:

  1. £3,600 loss
  2. £3,600 profit
  3. £4,640 loss
  4. £4,640 profit

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.