Tag: Income Recognition

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.

apple devices books business coffee
Photo by Serpstat on Pexels.com

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

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

Accounting Multiple Choice Question – 20 November 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

In preparing the income statement, only realised profits and not anticipated profits must be brought into account.

In addition, all possible losses must also be taken into account immediately.

Which accounting principle does this describe?

  1. accruals
  2. consistency
  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 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 – 19 November 2023

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

Photo by Pixabay on Pexels.com

The table shows information for Alex Trading for 31 December 2022.

  • Credit sales invoiced during financial year – worth £80k
  • Goods despatched to customers in December 2022 and invoiced in January 2023 – worth £5k
  • Goods included in sales for December 2022 on a sale or return basis, but only sold in January 2023: at invoice price £10k & at cost price £8k

Which amount will appear in the trading account as sales for the year ended 31 December 2022?

Select ONE answer:

  1. £75k
  2. £77k
  3. £83k
  4. £85k

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 – £80k + 35k – £10k
  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 – 25 September 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

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

Creative Commons License
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.

Photo by Pixabay on Pexels.com

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.