Tag: Financial Accounting

Accounting Multiple Choice Question – 25 December 2023

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

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Information about a business’s financial position is primarily provided in which financial statement?

Select ONE answer:

  1. The statement of profit or loss
  2. The statement of financial position
  3. The statement of equity and retained earnings
  4. The statement of cash flows

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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Accounting Multiple Choice Question – 24 December 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 loan due for repayment in 20 months’ time has been included as a current liability.

What will be the effect when this is corrected?

Select ONE answer:

  1. increase net assets
  2. increase net current assets
  3. no effect on net current assets
  4. reduce net current assets

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.

Accounting Multiple Choice Question – 20 December 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 does the term ‘nominal value of a share’ refer to?

Select ONE answer:

  1. The value that a share is sold by one shareholder to another shareholder for
  2. The price at which a company issues shares to raise money for use within the company
  3. A value chosen by the company when it was set up which is used to value the shares in the Statement of Financial Position
  4. The same value as the average selling price of the goods that the company sells

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 – The nominal price of a share exists so that the shares can be valued in the SOFP. The nominal value of the shares is chosen when the company is set up.
  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 – 19 December 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

Lucy Walton runs a small on-line business, selling silver jewellery that she makes in her house.

She uses a variety of equipment to make the silver jewellery, which she depreciates each year.

She keeps the method of depreciation the same from one financial year to the next.

Select ONE answer:

  1. Materiality
  2. Consistency
  3. Business entity
  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 2

  1. Not correct
  2. Correct – The concept of ‘consistency’ requires that accounting methods are kept the same from one accounting period to the next. This ensures that financial statements from one year can be compared to financial statements for the following year.
  3. Not correct
  4. Not correct

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