The Double Entry Model – Page 3 – The Multiple Choice Questions Blog

Accounting Multiple Choice Question – 13 February 2024

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

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The VAT account in Alex Trading Ltd’s nominal ledger currently shows output tax and input tax for the quarter at £228,816 and £176,949, respectively.

A detailed review of the account highlights the following matters:

£8,301 of VAT on invoices received has been posted to output tax
VAT of £3,606 on sales has been posted to the debit of the VAT account

The correct amount payable to HM Revenue and Customs is?

Select ONE answer:

£47,172
£35,265
£59,079
£42,477

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

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Correct – VAT Balance is as follows: Dr Input tax £176,949 + Dr Purchases (£8,301 * 2) £16,602 = £193,551 == > Cr Output Tax £228,816 + Cr Sales (£3,606 * 2) £7,212 = £236,028 == > The difference is £42,477

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Accounting Multiple Choice Question – 12 February 2024

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

In double-entry bookkeeping, which of the following statements is TRUE?

Select ONE answer:

Credit entries decrease liabilities and increase income
Debit entries decrease income and increase assets
Credit entries decrease expenses and increase assets
Debit entries decrease expenses and increase assets

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

Not correct
Correct
Not correct
Not correct

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Accounting Multiple Choice Question – 11 February 2024

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

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What transaction is represented by the double-entry:

debit rent (expense) and credit landlord (current liability)?

Select ONE answer:

The receipt of rental income by the business
The issue of an invoice for rent to a tenant
The receipt of an invoice for rent payable by the business
The payment of rent by the business

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

Not correct
Not correct
Correct
Not correct

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Accounting Multiple Choice Question – 16 December 2023

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

A business buys, on credit, a new machine for their factory from Alex Trading Ltd.

The double entry to record this transaction is?

Select ONE answer:

account to be debited: MACHINERY and account to be credited: ALEX TRADING LTD
account to be debited: MACHINERY and account to be credited: BANK
account to be debited: PURCHASES and account to be credited: ALEX TRADING LTD
account to be debited: PURCHASES and account to be credited: BANK

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

Correct– The account that is debited is the NCA account, ‘machinery’. This ensures that the new machine is correctly shown in the SOFP. The ‘purchases’ account is only used for the purchase of goods for re-sale. The credit entry is to the relevant accounts payables account, which uses the name of the supplier, to show that money is owed to the supplier, as ALEX TRADING LTD account is a current liability account.
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Accounting Multiple Choice Question – 13 June 2023

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

The following information relates to the annual membership subscriptions of the Cannock Chase cricket club for the year ended 31 December 2022.

1 January
subscriptions in arrears – £7,200
subscriptions paid in advance – £2,800

31 December
subscriptions in arrears – £7,800
subscriptions paid in advance – £4,200

Cash received during the year for subscriptions totalled £81,000.

Which amount should be shown in the income and expenditure account for membership subscriptions for the cricket club?

Select ONE answer:

£80,200
£81,000
£81,600
£81,800

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

Correct – £81,000 + (£7,800 – £7,200) + (£2,800 – £4,200)
Not correct
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Not correct

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

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