Tag: Income Statement

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 – 17 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 information is taken from the stationery account of Alex Trading Ltd.

  • value of stationery inventory at the beginning of the year – £600
  • cash paid for stationery during the year – £7,000
  • amount owing for stationery at the end of year – £480
  • value of stationery inventory at the end of the year – £800

How much should be debited to the income statement for stationery?

Select ONE answer:

  1. £6,680
  2. £6,800
  3. £7,280
  4. £8,080

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 — > £600 + £7,000 + £480 – £800
  4. Not correct

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