Tag: Topic 16

Accounting Multiple Choice Question – 1 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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At Alex Trading Ltd’s accounting year-end, the accountant Simon writes cheques to pay trade payables and records them in the books immediately.

The cheques are then deliberately retained by the accountant for two weeks.

What effect does this have on the year-end statement of financial position?

Select ONE answer:

  1. the accounts show a higher figure for cash
  2. the accounts show a lower figure for trade payables
  3. to improve Alex Trading Ltd’s cash flow
  4. to improve Alex Trading Ltd’s gearing

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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Accounting Multiple Choice Question – 27 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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Which accounting policy is not required to be disclosed in published company accounts?

Select ONE answer:

  1. basis of calculation of provision for doubtful debts
  2. basis of calculation of cost and net realisable value of stocks
  3. depreciation methods used
  4. treatment of goodwill

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 – 26 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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A company has issued £1M of 6% convertible debenture loans.

80% of holders converted at the rate of 48 ordinary shares of £0.25 each for each £100 of convertible debenture loans.

How many new ordinary shares were issued?

Select ONE answer:

  1. 384,000 shares
  2. 400,000 shares
  3. 480,000 shares
  4. 800,000 shares

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 == > (£1,000,000 / £100) * 48 shares * 0.8
  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 – 25 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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Alex Trading Ltd shows the following statement of financial position extract as at 31 December 2022.

  • ordinary share capital (£1 each) – £70,000
  • retained earnings – £6,200
  • 6% debentures repayable 2030 – £10,000
  • trade payables – £5,200
  • accruals – £2,700
  • prepayments – £4,100
  • bank overdraft – £20,200

What amount is shown as current liabilities as at 31 December 2022?

Select ONE answer:

  1. £24,000
  2. £28,100
  3. £38,100
  4. £40,200

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 – £5,200 + £2,700 + £20,200
  3. Not correct
  4. Not correct

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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

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