Accounting Multiple Choice Question – 28 October 2021

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

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A company purchases machinery on hire purchase over four years but does not own the machinery until the final payment has been made.


At the end of year 1 the company shows the machinery in its Balance Sheet as a fixed asset and also records the liability for the amount still owed.

Which accounting principle is being applied?

Select ONE answer:

  1. consistency
  2. materiality
  3. prudence
  4. substance over form

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 – 27 October 2021

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

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Of which concept is the writing off of a bad debt an example?

Select ONE answer:

  1. going concern
  2. matching
  3. prudence
  4. substance over form

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

Accounting Multiple Choice Question – 26 October 2021

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

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A company has the following balances.

trade debtors at 31 December 2020  —  £125,400

provision for doubtful debts at 1 January 2020  —  £1,800

During the year ended 31 December 2020, bad debts of £20,500 were written off.

The company provides for 5% of trade debtors at each year end.

What is the doubtful debts expense for the year ended 31 December 2020? 

Select ONE answer:

  1. £3,445
  2. £4,470
  3. £5,245
  4. £6,270 

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 – £125,400 @ 5% = £6,270 – £1,800 = £4,470
  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 – 25 October 2021

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

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Alex owns a road haulage business.


What would be classified as capital expenditure?

Select ONE answer:

  1. purchase of special number plates for new lorries
  2. purchase of replacement fuel pump for lorries
  3. purchase of replacement tyres for lorries
  4. purchase of road tax licence

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

Accounting Multiple Choice Question – 24 October 2021

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

apple devices books business coffee
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From which of the following do revenue reserves arise?

Select ONE answer:

  1. the issue of new shares by a company
  2. the revaluation of fixed assets
  3. the share premium received on shares issued by the company
  4. the trading activities of a company

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.