Tag: Financial Statements

Accounting Multiple Choice Question – 27 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 ONE of the following types of account would normally appear on the debit side of the trial balance?

Select ONE answer:

  1. Liability
  2. Income
  3. Capital
  4. Expense

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 – 25 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 statements concerning preparation of financial statements is true?

Select ONE answer:

  1. The balances on income and expense accounts are brought down at the end of the accounting period to be carried forward to the next accounting period
  2. The balances on asset and liability accounts are summarised in an additional ledger account known as the statement of financial position ledger account
  3. The profit and loss ledger account is a list of all the balances extracted from the business’s accounts
  4. A net loss is a credit entry in the profit and loss 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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This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 25 January 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 THREE of the following are elements of financial statements as identified by the IASB’s Conceptual Framework?

  • A.Income
  • B.Expenses
  • C.Profits
  • D.Losses
  • E.Obligations
  • F.Resources
  • G.Equity

Select ONE answer:

  1. A, B & C
  2. E, F & G
  3. A, B & G
  4. D, E & F

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 – According to the IASB’s Conceptual Framework, income, expenses and equity are elements of financial statements.
  4. Not correct

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

Accounting Multiple Choice Question – 15 January 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 directors of Alex Trading plc wish to omit an item from the company’s financial statements on the grounds that it is commercially sensitive.

Information on this item would influence the stakeholders when making economic decisions.

According to IAS 1 Presentation of Financial Statements, the item is thus said to be?

Select ONE answer:

  1. Neutral
  2. Prudent
  3. Material
  4. Understandable

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 – Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken, based on the financial statements
  4. Not correct

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

Accounting Multiple Choice Question – 14 January 2024

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

According to lAS 1 Presentation of Financial Statements, compliance with International Accounting Standards and International Financial Reporting Standards will normally ensure that?

Select ONE answer:

  1. The entity’s inventory is valued at net realisable value
  2. The entity’s assets are valued at their break-up value
  3. The entity’s financial statements are prepared on the assumption that it is a going concern
  4. The entity’s financial position, financial performance and cash flows are presented fairly

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.