Tag: Management Accounting

Accounting Multiple Choice Question – 3 October 2024

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

Which ONE of the following would be classified as current liabilities in the statement of financial position of a sole trader?

Select ONE answer:

  1. Owner’s capital
  2. Petty Cash
  3. Goods Taken For Own Use
  4. Accrued Interest Charges

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 – 2 October 2024

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

Which ONE of the following would be classified as current liabilities in the statement of financial position of a sole trader?

Select ONE answer:

  1. Owner’s capital
  2. Income tax payable
  3. Drawings
  4. Bank overdraft

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 – Income Tax Payable does not feature on a Sole Trader’s statement of financial position

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

Accounting Multiple Choice Question – 1 October 2024

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

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Alex has a sole trading business with net assets of £286,400 on 13 January 2024.

The business had net assets of £266,800 on 31 January 2023.

During the year Alex did the following:

(1) took goods for his own use which cost £10,000 and had a market value of £14,000

(2) introduced capital of £50,000

(3) withdrew £30,000 as salary.

The profit for the year was therefore?

Select ONE answer:

  1. £9,600
  2. £30,400
  3. £70,400
  4. £109,600

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 1

  1. Correct – Opening net assets £266,800 + Capital £50,000 – Drawings £40,000 + Profit (Balancing Figure) £9,600 = Closing Net Assets £286,400
  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 – 30 September 2024

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

Lucy’s net assets have increased by £127,000 over the year.

She took drawings of £47,000 and paid in to the business the proceeds of a personal life insurance policy amounting to £25,000.

Her net profit for the year was?

Select ONE answer:

  1. £815
  2. £810
  3. £825
  4. £820

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 – There are only (25 – 10 + 10 – 10) = 15 units in stock at the end of January. 10 of these are valued at £55, and the remainder at £54: (10 × £55) + ( 5 × £54) = £820

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Accounting Multiple Choice Question – 29 September 2024

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

Alex, a sole trader, has been unable to calculate his business’ profit or loss for the year ended 31 December 2023 as a fire destroyed most of his accounting records.

He has, however, been able to provide the following information to his accountant.

(1) Net assets at 31 December 2022 were £23,000 and £32,500 as at 31 December 2023

(2) Alex introduced additional capital during the year of £4,000 in cash

(3) He took cash drawings of £2,500 and goods with a selling price of £800. The cost of the goods was £750 when purchased.

What was Alex’s profit or loss for the year ended 31 December 2023?

Select ONE answer:

  1. £8,750 profit
  2. £(1,750) loss
  3. £9,800 profit
  4. £(2,750) loss

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 – Opening capital £23,000 + Capital injection £4,000 – Drawings (£2,500 + £750) £3,250 = £23,750 == > Difference to Closing capital of £32,500 is profit = £8,750
  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.