Tag: Topic 3

Accounting Multiple Choice Question – 28 July 2023

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

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When is it necessary to distinguish between revenue and capital expenditure?

Select ONE answer:

  1. when preparing cash budgets
  2. when preparing investment appraisal calculations
  3. when preparing profit and loss accounts
  4. when preparing purchase ledger control accounts

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

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Accounting Multiple Choice Question – 13 June 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 information relates to the annual membership subscriptions of the Cannock Chase cricket club for the year ended 31 December 2022.

1 January
subscriptions in arrears – £7,200
subscriptions paid in advance – £2,800

31 December
subscriptions in arrears – £7,800
subscriptions paid in advance – £4,200

Cash received during the year for subscriptions totalled £81,000.

Which amount should be shown in the income and expenditure account for membership subscriptions for the cricket club?

Select ONE answer:

  1. £80,200
  2. £81,000
  3. £81,600
  4. £81,800

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 – £81,000 + (£7,800 – £7,200) + (£2,800 – £4,200)
  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 – 8 June 2023

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

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In the books of a sole trader, discounts received of £1,400 have been posted correctly in the suppliers’ accounts but debited in the discounts allowed account.

What are the correcting entries?

Select ONE answer:

  1. Dr suspense £2,800  and  Cr discounts allowed £1,400 + discounts received £1,400
  2. Dr discounts allowed £1,400 + discounts received £1,400  and  Cr suspense £2,800
  3. Dr discounts allowed £1,400  and  discounts received £1,400
  4. Dr discounts received £1,400  and  discounts allowed £1,400

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

Accounting Multiple Choice Question – 5 June 2023

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 purpose of providing for depreciation?

Select ONE answer:

  1. To apply the accruals or matching principle.
  2. To ascertain the true value of non-current assets.
  3. To ensure that money is available for repair of non-current assets.
  4. To provide cash in the business for replacement.

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.

Accounting Multiple Choice Question – 4 June 2023

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

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Photo by Serpstat on Pexels.com

Non-current assets of a company were:

start of year:

  • at cost – £460,000
  • cumulative depreciation – £215,000
  • net book value – £245,000

end of year:

  • at cost – £505,000
  • cumulative depreciation- £237,000
  • net book value – £268,000

During the year Non-current assets costing £92,000 were purchased and Non-current assets with a net book value of £16,000 were sold.

What was the depreciation charge for the year?

Select ONE answer:

  1. £22,000
  2. £23,000
  3. £53,000
  4. £69,000

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 – £245k + £92k – £16k – £268k = = > £53k
  4. Not correct

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