Accounting Multiple Choice Question – 6 January 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 bank statement shows a credit balance of £8,360.

Comparison with the cash book reveals:

• Cheques totalling £18,725, sent to suppliers, have not been presented.
• Cheques totalling £16,223, received from customers, have not been credited by the bank.
• Bank charges of £124 have not been entered in the cash book.

What is the correct cash book balance?

Select ONE answer:

  1. £5,734 credit
  2. £5,734 debit
  3. £5,858 debit
  4. £10,986 credit

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 = 8,360 – 18,725 + 16,223 (you may want to deduct £124 charges from the bank statement, but such charges would already have been taken off on the bank statement before ascertaining the bank balance of £8,360).
  4. Not correct

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Accounting Multiple Choice Question – 5 January 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 cheque for payment of wages of £214 has been debited to the purchases account as £241.

A suspense account is created.

What are the correcting entries?

Select ONE answer:

  1. account to be debited £ – purchases 214 + suspense 27 & account to be credited £ wages 241
  2. account to be debited £ – wages 214 & account to be credited £ suspense 214 + purchases 0
  3. account to be debited £ – wages 214 + suspense 27 & account to be credited £ purchases 241
  4. account to be debited £ – purchases 241 & account to be credited £ wages 214 + suspense 27

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 – 4 January 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 fails to agree.

The debits exceed the credits.

Which single error in the general (nominal) ledger would cause the difference in the trial balance?

Select ONE answer:

  1. A contra between the debtors’ and creditors’ ledgers has been entered on the credit side of both control accounts.
  2. A rental receipt has been entered twice in the rent receivable account.
  3. The closing stock at the end of the previous period has not been entered in the stock account.
  4. The opening electricity accrual has been brought forward on the wrong side of the ledger account.

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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Accounting Multiple Choice Question – 3 January 2023

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

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Alex the trader buys inventory costing £6,000 for resale to his customers.

Alex is entitled to trade discount at 10% and cash discount of 5% from his supplier.

On the same day. Alex discovers that he can only sell the inventory on for £5,000.

Which amount should Alex record as the purchase price of the inventory?

Select ONE answer:

  1. £5,000
  2. £5,130
  3. £5,400
  4. £6,000

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 – £6,000 * 0.9 = £5,400
  4. Not correct

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Accounting Multiple Choice Question – 2 January 2023

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 calculation for capital employed?

Select ONE answer:

  1. current assets – current liabilities
  2. fixed assets + current assets – current liabilities
  3. fixed assets + current assets + current liabilities
  4. net assets – current liabilities

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

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

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