Tag: Topic 3

Accounting Multiple Choice Question – 3 March 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 plc purchases a machine for £15,000 on 1 January 2023.

After incurring transportation costs of £1,300 and spending £2,500 on installing the machine, it breaks down and costs £600 to repair.

Depreciation is charged at 10% per annum.

At what carrying amount will the machine be shown in Alex Trading plc’s statement of financial position at 31 December 2023?

Select ONE answer:

  1. £13,500
  2. £14,670
  3. £16,920
  4. £18,800

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 3

  1. Not correct
  2. Not correct
  3. Correct – Cost (15,000 + 1,300 + 2,500) = £18,800 == > Depreciation (10% x £18,800) == > Carrying amount £16,920
  4. Not correct

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Accounting Multiple Choice Question – 2 March 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 plc purchased a machine for which the supplier’s list price is £28,000.

Alex Trading paid £23,000 in cash, and traded in an old machine, which has a carrying amount of £8,000.

It is the company’s policy to depreciate machines at the rate of 10% per annum on cost.

What is the carrying amount of the machine after one year?

Select ONE answer:

  1. £18,000
  2. £20,700
  3. £22,200
  4. £25,200

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – The cost of the machine is £28,000. Alex Trading plc paid £23,000 in cash and agreed a trade-in value of £5,000 for the old machine. (The old asset’s carrying amount is irrelevant.) After one year, the carrying amount of the new machine is 90% of £28,000 = £25,200.

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Accounting Multiple Choice Question – 1 March 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 plc is a retailer which is registered for VAT.

All sales, and all purchases of goods for resale, attract VAT at the rate of 20%.

For the year to 31 December 2023 Alex Trading plc paid £68,150 to suppliers in respect of goods for resale and showed revenue in the income statement of £89,300 net of VAT.

There was no change in the figures for inventory and trade payables in the statements of financial position as at 31 December 2022 and 2023.

What was Alex Trading plc’s gross profit for the year ended 31 December 2023?

Select ONE answer:

  1. £21,150
  2. £7,850
  3. £39,300
  4. £18,000

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 – £89,300 – (£60,000 / 1.2)
  4. Not correct

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Accounting Multiple Choice Question – 29 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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Which of the following statements concerning the extended trial balance is correct?

Select ONE answer:

  1. If the initial trial balance balances an error may still have been made
  2. The closing inventories balance is included in the initial trial balance
  3. The owner’s drawings taken in the period are shown in the adjustments columns of the extended trial balance
  4. Non-current assets appear in the credit column of the statement of financial position

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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Accounting Multiple Choice Question – 28 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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Which of the following would be a credit balance in the trial balance?

Select ONE answer:

  1. Bank overdraft
  2. Drawings
  3. Discounts allowed
  4. Carriage outwards

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.