Tag: GCSE

Accounting Multiple Choice Question – 17 June 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 plc issues 1M ordinary shares of £1 each for £3 each and £500k 6 % debentures.

By what amount will the net assets of Alex plc increase as a result of these transactions?

Select ONE answer:

  1. No increase
  2. £2.5M
  3. £3.0M
  4. £3.5M

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 – Dr Cash £3M + £0.5M Cr NCL £0.5M SC £3M = = > A – L = C = £3.5M – £0.5M = £3M
  4. Not correct

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Accounting Multiple Choice Question – 16 June 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 directors of lucy Ltd are completing the accounts for the year ended 31 December 2022.

They discover that the Inventory at the start of the financial year at 1 January 2022 was over-valued by £100k.

What is the effect of correcting this error in the accounts?

Select ONE answer:

  1. Profit for the year ended 31 December 2022 DECREASE & Revenue reserves brought forward as at 1 January 2022 DECREASE
  2. Profit for the year ended 31 December 2022 DECREASE & Revenue reserves brought forward as at 1 January 2022 INCREASE
  3. Profit for the year ended 31 December 2022 INCREASE & Revenue reserves brought forward as at 1 January 2022 DECREASE
  4. Profit for the year ended 31 December 2022 INCREASE & Revenue reserves brought forward as at 1 January 2022 INCREASE

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 – 15 June 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 owner of a business paid for his family’s holiday from the business bank account and recorded the payment as drawings.

Which accounting concept is being applied?

Select ONE answer:

  1. Accruals
  2. Business Entity
  3. Going concern
  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
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 14 June 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 plc buys items for resale at a cost of £15 per unit.

They are normally sold for £22.

A damaged unit can only be sold at the normal selling price after modifications costing £14 are made by Alex plc.

The scrap value of the item is £7 per unit.

How much should the damaged unit be valued at in the balance sheet?

Select ONE answer:

  1. £7
  2. £8
  3. £14
  4. £15

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 correc
  2. Correct – Lower of cost and NRV = = > Cost £15 vs NRV (£22 – £14) of £8
  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 – 13 June 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 following information relates to the annual membership subscriptions of the Cannock Chase cricket club for the year ended 31 December 2022.

1 January
subscriptions in arrears – £7,200
subscriptions paid in advance – £2,800

31 December
subscriptions in arrears – £7,800
subscriptions paid in advance – £4,200

Cash received during the year for subscriptions totalled £81,000.

Which amount should be shown in the income and expenditure account for membership subscriptions for the cricket club?

Select ONE answer:

  1. £80,200
  2. £81,000
  3. £81,600
  4. £81,800

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 – £81,000 + (£7,800 – £7,200) + (£2,800 – £4,200)
  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.