Tag: Income Due

Accounting Multiple Choice Question – 30 November 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 items appear in the subscriptions account for the Milford skittles club for a financial year.

  • subscriptions that were received which were owed from the previous year – £3,000
  • subscriptions paid in advance for next year – £1,000
  • subscriptions income transferred to the income and expenditure account – £50,000
  • subscriptions outstanding from members at the year-end – £2,000

How much cash was actually received from the members in the financial year?

Select ONE answer:

  1. £46,000
  2. £50,000
  3. £52,000
  4. £56,000

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 – £50K + £3k – £2K + £1k
  4. Not correct

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Accounting Multiple Choice Question – 25 September 2023

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

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Interest receivable account shows interest of £17,500 was received during the year.

Interest receivable of £1,600 is due at the year-end.

How will this be shown in the final accounts?

Select ONE answer:

  1. Income Statement Additional Income Credit £17,500 AND Statement of Financial Position Debit Current Assets £1,600
  2. Income Statement Additional Income Credit £19,100 AND Statement of Financial Position Debit Current Assets £1,600
  3. Income Statement Additional Income Credit £17,500 AND Statement of Financial Position Debit Current Liabilities £1,600
  4. Income Statement Additional Income Credit £17,500 AND Statement of Financial Position Debit Current Liabilities £1,600

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 – 16 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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Which of the following correctly shows the effect of a company increasing the value of its freehold property?

Select ONE answer:

  1. asset use ratio – decrease AND gearing – decrease
  2. asset use ratio – decrease AND gearing – increase
  3. asset use ratio – increase AND gearing – decrease
  4. asset use ratio – increase AND gearing – 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 1

  1. Correct
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 13 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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Alex plc’s capital is made up as follows:

  • ordinary shares of £1.00 each – £200,000
  • share premium account – £80,000
  • Retained profits – £160,000

Changes now to be made (in the order given):

  • A one for one bonus issue
  • A rights issue of 100 000 ordinary shares of £1.00 each at £1.40 per share

The company wishes to maximise the amounts available to pay dividends.

What will be the ordinary capital and reserves of the company?

Select ONE answer:

  1. ordinary share capital £500,000 and share premium £40,000 and Retained profits £40,000
  2. ordinary share capital £500,000 and share premium £80,000 and Retained profits £NIL
  3. ordinary share capital £540,000 and share premium £NIL and Retained profits £40,000
  4. ordinary share capital £540,000 and share premium £40,000 and Retained profits £40,000

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 1

  1. Correct – a. Dr Share Premium Account £80,000 Dr Retained profits £120,000 Cr Share Capital £200,000 PLUS b. Dr Cash £140,000 Cr Share Capital £100,000 Cr Share Premium £40,000
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 12 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 table shows extracts from the trial balance of Alex plc as at 31 December 2022.

  • ordinary share capital – £20,000
  • share premium – £40,000
  • long term loan (repayable 2027) – £30,000
  • bank overdraft – £60,000
  • 4 % preference share capital – £50,000
  • 7 % debentures 2032 – £70,000

What is the total of ‘creditors: amounts falling due after more than one year’ in the balance sheet?

Select ONE answer:

  1. £100,000
  2. £150,000
  3. £160,000
  4. £210,000

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 1

  1. Correct – £30,000 + £70,000
  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.