Tag: Topic 3

Accounting Multiple Choice Question – 28 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 of the following best explains the imprest (set amount) system of petty cash?

Select ONE answer:

  1. Each month an equal amount of cash is transferred into petty cash
  2. The exact amount of petty cash expenditure is reimbursed at intervals to maintain a fixed float
  3. Petty cash must be kept under lock and key
  4. The petty cash total must never fall below the imprest amount

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 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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Two statements are made below:

Statement 1 – Books of prime or original entry in a standard double entry bookkeeping system are used to list similar transactions with the totals being posted to the nominal ledger.

A True
B False

Statement 2 – The sales journal or sales daybook is the book of prime or original entry for discount allowed to customers.

C True
D False

Which combination of the two statements is correct?

Select ONE answer:

  1. A & C
  2. B & C
  3. B & D
  4. A & D

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 – (the cash book is the book of original entry for discounts)

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Accounting Multiple Choice Question – 26 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 paid out £12,450 in net wages to his employees.

In respect of these wages, the following amounts were shown in the statement of financial position.

  • PAYE payable – £2,480
  • National Insurance payable – employees’ £1,350
  • National Insurance payable – employer’s £1,500

No other deductions were made.

Employees’ gross wages, before deductions, were?

Select ONE answer:

  1. £12,450
  2. £27,450
  3. £16,280
  4. £17,780

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 – 12,450 + 2,480 + 1,350 = £16,280
  4. Not correct

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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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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.