Tag: Statement Of Financial Position

Accounting Multiple Choice Question – 24 November 2023

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

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Alex Trading Supplies sells some of its inventory for £500 on credit to a customer.

The inventory originally cost £600.

What is the effect of this transaction on the statement of financial position?

Select ONE answer:

  1. current assets – decrease by £100 and owner’s capital – decrease by £100
  2. current assets – decrease by £100 and owner’s capital – increase by £100
  3. current assets – increase by £100 and owner’s capital – decrease by £100
  4. current assets – increase by £100 and owner’s capital – increase by £100

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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Accounting Multiple Choice Question – 15 November 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 transport business owned by Alex, the sole proprietor, purchased a motor vehicle.

This was charged to the Motor Expenses account. 

What are the effects of this on the end-of-year statement of financial position?

Select ONE answer:

  1. Non-current assets understated & current assets understated
  2. Non-current assets overstated & current assets overstated
  3. Non-current assets overstated & capital account overstated
  4. Non-current assets understated & capital account understated

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 – 13 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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The following information has been taken from a recent statement of financial position of Alex Trading:

  • non-current assets – £30,000
  • working capital ratio – 5:1
  • capital – £34,000
  • current liabilities – £1,000

What is the amount of the current assets?

Select ONE answer:

  1. £1,000
  2. £5,000
  3. £6,000
  4. £20,000

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 2

  1. Not correct
  2. Correct == > A-L = C therefore £30k – £1k = £29k thus CA are £5k or wcr of 5:1 means £5k / £1K = 5:1
  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 – 8 October 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

Alex Trading Ltd has the following assets and liabilities:

  • short-term investment – £6,000
  • loan interest owing – £1,500
  • loan repayable within one year – £12,000
  • deposits from customers for orders – £4,500
  • Trade payables – £27,000
  • Trade receivables – £39,000
  • pre-payments – £3,500

What is the amount of net current assets?

Select ONE answer:

  1. £3,500
  2. £4,500
  3. £8,000
  4. £15,500

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 == > £6K + £39k + £3.5k – £1.5k – £12k – £4.5k – £27k
  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 -4 October 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

Alex Trading sells some of its inventory for £100 on credit to a customer.

The inventory originally cost £50.

Which statement below reflects the effect of this transaction on the statement of financial position?

Select ONE answer:

  1. current assets: decrease by £50 AND owner’s capital: decreases by £50
  2. current assets: decrease by £50 AND owner’s capital: increases by £50
  3. current assets: increase by £50 AND owner’s capital: decreases by £50
  4. current assets: increase by £50 AND owner’s capital: increases by £50

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.