Tag: Topic 4

Accounting Multiple Choice Question – 15 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 transport business owned by Alex, the sole proprietor, purchased a motor vehicle.

This was charged to the Motor Expenses account. 

What are the effects of this on the end-of-year statement of financial position?

Select ONE answer:

  1. Non-current assets understated & current assets understated
  2. Non-current assets overstated & current assets overstated
  3. Non-current assets overstated & capital account overstated
  4. Non-current assets understated & capital account understated

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

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Accounting Multiple Choice Question – 3 October 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 Ltd’s capital expenditure of £200,000 has been debited in error to the purchases account.

Depreciation is provided at the rate of 15 % per annum on the cost of all non-current assets held at each year end.

How will this affect the net profit?

Select ONE answer:

  1. £170,000 understated
  2. £200,000 overstated
  3. £200,000 understated
  4. £230,000 overstated

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 – £200k * 0.85
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 1 October 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’s cash book shows a debit balance of £12,460 at 30 June 2023.

Bank charges of £4,500 have NOT been entered in the cash book.

A cheque for £14,470 received from a trade receivable and a cheque for £1,740 paid to a trade payable appear in the cash book but not on the bank statement.

What is the balance shown on the bank statement at 30 June 2023?

Select ONE answer:

  1. £4,770 credit
  2. £4,770 debit
  3. £20,690 credit
  4. £20,690 debit

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 == > £12,460 – £4,500 – £14,470 + £1,740
  3. Not correct
  4. Not correct

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