Tag: Non-current Assets

Accounting Multiple Choice Question – 24 October 2023

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

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Certain information concerning Non-current Assets must be disclosed in the notes to the financial statements.

To which of the following does this rule not apply?

Select ONE answer:

  1. economic useful life of asset
  2. method of depreciation used
  3. scrap value of asset
  4. total depreciation for period

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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Accounting Multiple Choice Question -27 September 2023

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

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Why do businesses charge depreciation on their non-current assets?

Select ONE answer:

  1. to ensure that sufficient cash is available to replace the assets
  2. to show the realisable value of the assets in the statement of financial position
  3. to show when the assets must be replaced
  4. to spread the cost of the assets over their estimated useful lives

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 – 26 September 2023

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

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The table shows how a property appears in the statement of financial position of Alex ltd:

  • land and buildings – £100k
  • accumulated depreciation – £40k
  • net book value – £60k

The land and buildings are revalued to £150k

What is the journal entry to record the revaluation?

Select ONE answer:

  1. Dr land and buildings £50k AND CR Income Statement £50k
  2. Dr land and buildings £50k accumulated depreciation £40k AND CR revaluation reserve £90k
  3. Dr land and buildings £50k AND CR revaluation reserve £50k
  4. Dr land and buildings £90k AND CR revaluation reserve £90k

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

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

Accounting Multiple Choice Question – 3 August 2023

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

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The following debit balance appears on a trial balance after preparing the manufacturing account for the year.

  • loose tools £18,000

What is this item?

Select ONE answer:

  1. a creditor for loose tools
  2. the annual charge for loose tools
  3. a prepayment for loose tools
  4. stock of loose tools

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

Accounting Multiple Choice Question – 1 August 2023

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 two fixed assets. Details are given in the table.

  • Asset X: date bought 1 Jan Year 1, cost £10,000, depreciation method 5 years straight-line, residual value £2,000
  • Asset Y: date bought 1 Jan Year 1, cost £20,000, depreciation method 20% reducing balance, residual value £NIL

What is the depreciation charge for the year ended 31 December, Year 2?

Select ONE answer:

  1. £4,800
  2. £5,200
  3. £5,600
  4. £6,000

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 1

  1. Correct – X = £10k – £2k / 5 = £1.6k; Y = (£20k – £4k) * 20% = £3.2 == > £4.8k
  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.