Tag: Topic 1

Accounting Multiple Choice Question – 25 January 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 THREE of the following are elements of financial statements as identified by the IASB’s Conceptual Framework?

  • A.Income
  • B.Expenses
  • C.Profits
  • D.Losses
  • E.Obligations
  • F.Resources
  • G.Equity

Select ONE answer:

  1. A, B & C
  2. E, F & G
  3. A, B & G
  4. D, E & F

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 – According to the IASB’s Conceptual Framework, income, expenses and equity are elements of financial statements.
  4. Not correct

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Accounting Multiple Choice Question – 24 January 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 the owner of Alex Trading increased his business’s total number of motor vehicles by adding his own car to the fleet for exclusive use by the business.

Which elements of the accounting equation will change due to this transaction?

Select ONE answer:

  1. Assets only
  2. Capital only
  3. Assets and capital
  4. Assets and liabilities

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 – The car increases assets while it is treated as capital introduced to Alex trading rather than as a liability of the business to its proprietor.
  4. Not correct

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

Accounting Multiple Choice Question – 23 January 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 Trading sells goods for cash for £1,000, which had cost them £500 to purchase.

Which elements of the accounting equation for Alex Trading will change due to this transaction?

Select ONE answer:

  1. Assets and liabilities
  2. Assets and capital
  3. Capital and liabilities
  4. Assets only

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 – Assets will increase as there is an increase in cash of £1,000 and a decrease in inventory of only £500, and Alex’s capital will increase due to the profit made of £500 (£1,000 – £500).
  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 – 22 January 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 Trading borrows £10,000 from a bank.

Which elements of the accounting equation will change due to this transaction?

Select ONE answer:

  1. Assets and liabilities
  2. Assets and capital
  3. Capital and liabilities
  4. Assets only

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 -Assets increase as cash on receipt of the loan funds, and liabilities will increase as the loan is a liability.
  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 – 21 January 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 Trading purchased some goods on credit.

Which elements of the accounting equation will change due to this transaction?

Select ONE answer:

  1. Assets and liabilities
  2. Assets and capital
  3. Capital and liabilities
  4. Assets only

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 -Assets will increase as Alex Trading has acquired inventory, and liabilities will increase as the goods were purchased on credit.
  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.