Tag: Management Accounting

Accounting Multiple Choice Question – 23 September 2024

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

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A trial balance extracted from a sole trader’s records failed to agree, and a suspense account was opened for the difference.

Which of the following matters would require an entry in the suspense account to correct them?

Select ONE answer:

  1. Discount allowed was mistakenly debited to discount received account.
  2. Cash received from the sale of a non-current asset was correctly entered in the cash book and was credited to the disposal account.
  3. The balance on the rent account was omitted from the trial balance.
  4. Goods taken from inventory by the owner had been recorded by crediting Drawings account and debiting Purchases account.

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 == > Answer 1 is a debit to the wrong account and Answer 2 is correct and Answer 4 is double entry although the wrong way round.
  4. Not correct

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Accounting Multiple Choice Question – 22 September 2024

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

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A sole trader’s trial balance as at 13 October 2023 does not agree, with the debit side totalling £500 less than the credit side.

During November, the following errors are discovered:

1 The sales daybook for October had been undercast by £150
2 Rent received of £240 had been credited to the rent expense payables (accrual) account from the cash book
3 The allowance for doubtful debts for receivables, which decreased by £420, had been recorded in the allowance for doubtful debts for receivables account as an increase

Following the correction of these errors, the balance on the suspense account would be?

Select ONE answer:

  1. £340 credit
  2. £250 credit
  3. £1,340 debit
  4. £340 debit

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 – DR £500 & CR £840 (Error 3) = DR £340 — > Error 1 requires a debit to the receivables account and a credit to sales with no effect on suspense. Error 2 is simply moving the credit from one account to another with no effect on suspense.
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 21 September 2024

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

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A sole trader’s trial balance totals were:

Debit £387,642

Credit £379,642

A suspense account was opened for the difference.

Which of the following errors would have the effect of reducing the difference when corrected?

Select ONE answer:

  1. The bank deposit balance of £8,000 has been omitted from the trial balance
  2. £4,000 received for rental income for part of the office being sublet has been correctly recorded in the cash book but debited to the rent expense account
  3. No entry has been made in the records for a cash sale of £8,000
  4. £8,000 paid for repairs to plant has been debited to the plant asset account

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. Notcorrect
  2. Correct – When the error is corrected there will be a credit entry of £8,000 to rent receivable.
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 20 September 2024

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

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At the end of its first year of trading on 30 June 2021 Alex Ltd’s net assets are £207,594.

It has share capital of £50,000 made up of 25p equity shares issued at 40p each, and a retained profits reserve of £107,594.

In relation to Alex Ltd’s balance sheet as at 30 June 2021 which of the following be true?

Select ONE answer:

  1. It has a general reserve of £50,000
  2. It has share premium of £100,000
  3. It has a general reserve of £20,000
  4. It has share premium of £50,000

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 == > Share capital + Share Premium of £30K + profit reserve + General Reserve (Balance Number) = Closing position
  4. Not correct

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Accounting Multiple Choice Question – 19 September 2024

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 transactions would initially be recorded in a company’s journal rather than its cash book?

Select ONE answer:

  1. Bonus issue of shares
  2. Sale of goods for cash to a customer
  3. Receipt of loan from a bank
  4. Purchase for cash of shares in another 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 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.