Tag: Financial Accounting

Accounting Multiple Choice Question – 9 August 2023

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

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How should inventory be valued in published accounts?

Select ONE answer:

  1. cost
  2. net realisable value
  3. replacement cost
  4. the lower of cost and net realisable value

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 – 8 August 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 information relates to the subscriptions of a book-keeping club.

  • at the start of the year: in advance £50 & in arrears £75
  • at the end of the year: in advance £150 & in arrears £120

Cash received during the year was £3,750.

What was the subscription income for the year?

Select ONE answer:

  1. £3,695
  2. £3,750
  3. £3,755
  4. £3,805

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 – £3,750 + £50 – £75 – £150 + £120
  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 – 6 August 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

The following information is taken from the books of Alex Ltd at 30 April.

  • total of sales ledger balances was £84,000
  • balance on sales ledger control account was £83,100

What could have caused the difference between the sales ledger balances and the sales ledger control account balance?

Select ONE answer:

  1. an invoice for £900 not entered in the sales journal
  2. an invoice in the sales journal for £2,100 entered in the sales ledger account as £1,200
  3. the sales journal total for March overstated by £900
  4. the sales journal total for April, £9,800, entered in the sales ledger control account as £8,900

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.

Accounting Multiple Choice Question – 5 August 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

A company makes purchases from Alex Ltd and also sells goods to Alex Ltd.

At the year-end the company owes Alex Ltd £500 and X Ltd owes Alex Ltd £750.

What are the correct entries to contra (offset) these amounts?

Select ONE answer:

  1. PLCA Debit £250 / SLCA Credit £250
  2. PLCA Debit £500 / SLCA Credit £500
  3. PLCA Debit £750 / SLCA Credit £500
  4. PLCA Debit £750 / SLCA Credit £750

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.

Accounting Multiple Choice Question – 4 August 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

At the year-end a cash book shows a credit balance of £4,800.

The bank statement included bank charges of £25 which had not been included in the cash book.

Cheque payments entered in the cash book before the year end to the value of £250 had not yet cleared the bank.

How would the bank balance be shown in the statement of financial position?

Select ONE answer:

  1. current asset £4,775
  2. current liability £4,825
  3. current asset £5,025
  4. current liability £5,075

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 – £4,800 + £25
  3. Not correct
  4. Not correct

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