Tag: Topic 3

Accounting Multiple Choice Question – 17 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 is the correct double entry for the posting of the discounts received column in the cash payments book / cashbook?

Select ONE answer:

  1. Debit Discounts received, Credit Receivables
  2. Debit Payables, Credit Discounts received
  3. Debit Receivables, Credit Discounts received
  4. Debit Discounts received, Credit Payables

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 – 16 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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In relation to books of original or prime entry and double entry bookkeeping for an entity which is registered for VAT, which one of the following statements is correct?

Select ONE answer:

  1. The payables ledger column in the cash payments book is debited to the purchases account in the nominal ledger
  2. Purchases and VAT in the purchases daybook are recorded in the nominal ledger as debit entries to the purchases and VAT accounts respectively and as a credit entry in the payables control account
  3. The cash receipt recorded in the petty cash book when the petty cash is topped up is recorded as a debit entry in the main cash book
  4. VAT recorded in the cash book in respect of purchases is credited to the VAT account

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 – 15 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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Alex Trading Ltd has opening trade payables of £24,183 and closing trade payables of £34,655.

Purchases for the period totalled £254,192 (£31,590 relating to cash purchases).

Total payments recorded in the payables ledger for the period were?

Select ONE answer:

  1. £212,130
  2. £233,074
  3. £243,720
  4. £264,664

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 – Bal b/d CR £24,817 + CR Purchases (£254,192 – £31,590) – Bal c/d DR £34,655 == > Payments = £212,130
  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 – 14 February 2024

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

Photo by Olya Kobruseva on Pexels.com

The double entry to record a settlement or cash discount granted by a supplier is?

Select ONE answer:

  1. Debit Payables, Credit Discounts allowed
  2. Debit Payables, Credit Discounts received
  3. Debit Discounts received, Credit Payables
  4. Debit Discounts allowed, Credit Payables

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

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

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:

  1. £47,172
  2. £35,265
  3. £59,079
  4. £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

  1. Not correct
  2. Not correct
  3. Not correct
  4. 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

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