Tag: Topic 3

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

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Accounting Multiple Choice Question – 20 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 is £5,000 overdrawn at his bank and then receives £2,000 from a credit customer in respect of an overdue invoice.

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

Select ONE answer:

  1. Assets and liabilities only
  2. Liabilities only
  3. Assets only
  4. Assets, liabilities and capital

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 – The overdraft liability will decrease, and receivables will decrease by an equal amount.
  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 – 4 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 should be accounted for as capital expenditure?

Select ONE answer:

  1. The annual cost of painting a factory floor
  2. The repair of a window in a building
  3. The purchase of a vehicle by a garage for re-sale
  4. Legal fees incurred on the purchase of a building

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 – Legal fees incurred on the purchase of a building – the others are all revenue expenditure.

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Accounting Multiple Choice Question – 3 January 2024

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

apple devices books business coffee
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Which of the following best explains what is meant by ‘capital expenditure?

Capital expenditure is expenditure…?

Select ONE answer:

  1. On non-current assets, including repairs and maintenance
  2. On expensive items over £10,000
  3. On the acquisition of non-current assets, or improvement in their earning capacity
  4. On items relating to owners’ capital

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- Capital expenditure relates to the acquisition of, or improvement of, the earning capacity of non-current assets.
  4. Not correct

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

Accounting Multiple Choice Question – 31 December 2023

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A business can make a profit and yet have a decreased bank balance.

Which of the following might cause this to happen?

Select ONE answer:

  1. The sale of non-current assets at a loss
  2. The charging of depreciation in the statement of profit or loss
  3. The lengthening of the period of credit given to customers
  4. The lengthening of the period of credit taken from suppliers

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.