Tag: Topic 3

Accounting Multiple Choice Question – 1 December 2023

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

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The directors of Alex Ltd provide the following information to you.

  • bank overdraft – £1,200
  • equipment – £12,000
  • long term loan – £8,000
  • petty cash – £900
  • Inventory – £2,500
  • trade payables – £3,000
  • Trade receivables – £2,000

What is the amount of the net current assets?

Select ONE answer:

  1. £1,200
  2. £2,400
  3. £3,600
  4. £5,200

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 1

  1. Correct – £2,500 + £2.000 + £900 – £3,000 – £1,200
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 30 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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The following items appear in the subscriptions account for the Milford skittles club for a financial year.

  • subscriptions that were received which were owed from the previous year – £3,000
  • subscriptions paid in advance for next year – £1,000
  • subscriptions income transferred to the income and expenditure account – £50,000
  • subscriptions outstanding from members at the year-end – £2,000

How much cash was actually received from the members in the financial year?

Select ONE answer:

  1. £46,000
  2. £50,000
  3. £52,000
  4. £56,000

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 – £50K + £3k – £2K + £1k
  4. Not correct

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

Accounting Multiple Choice Question – 28 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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A loan due for repayment in 20 months’ time has been included as a current liability.

What will be the effect when this is corrected?

Select ONE answer:

  1. increase net assets
  2. increase net current assets
  3. no effect on net current assets
  4. reduce net current assets

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 – 25 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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Alex Trading Ltd policy is to depreciate its equipment by 30% annually using the reducing balance method.

A piece of equipment which was two years old was sold for £6,000 and the profit on sale was £1,590.

What was the cost price of the equipment?

Select ONE answer:

  1. £7,590
  2. £9,000
  3. £9,600
  4. £11,025

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 – £9,000 * 0.3 = £2,700 = £6,300 * 0.3 = £1,890 == > £4,590 == > Dr £1,590 Cr £6,000 Cr £4,590 = Cost £9,000
  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 – 24 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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Alex Trading Supplies sells some of its inventory for £500 on credit to a customer.

The inventory originally cost £600.

What is the effect of this transaction on the statement of financial position?

Select ONE answer:

  1. current assets – decrease by £100 and owner’s capital – decrease by £100
  2. current assets – decrease by £100 and owner’s capital – increase by £100
  3. current assets – increase by £100 and owner’s capital – decrease by £100
  4. current assets – increase by £100 and owner’s capital – increase by £100

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

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