Tag: Topic 4

Accounting Multiple Choice Question – 6 August 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 is taken from the books of Alex Ltd at 30 April.

  • total of sales ledger balances was £84,000
  • balance on sales ledger control account was £83,100

What could have caused the difference between the sales ledger balances and the sales ledger control account balance?

Select ONE answer:

  1. an invoice for £900 not entered in the sales journal
  2. an invoice in the sales journal for £2,100 entered in the sales ledger account as £1,200
  3. the sales journal total for March overstated by £900
  4. the sales journal total for April, £9,800, entered in the sales ledger control account as £8,900

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 – 5 August 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 company makes purchases from Alex Ltd and also sells goods to Alex Ltd.

At the year-end the company owes Alex Ltd £500 and X Ltd owes Alex Ltd £750.

What are the correct entries to contra (offset) these amounts?

Select ONE answer:

  1. PLCA Debit £250 / SLCA Credit £250
  2. PLCA Debit £500 / SLCA Credit £500
  3. PLCA Debit £750 / SLCA Credit £500
  4. PLCA Debit £750 / SLCA Credit £750

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 – 4 August 2023

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

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At the year-end a cash book shows a credit balance of £4,800.

The bank statement included bank charges of £25 which had not been included in the cash book.

Cheque payments entered in the cash book before the year end to the value of £250 had not yet cleared the bank.

How would the bank balance be shown in the statement of financial position?

Select ONE answer:

  1. current asset £4,775
  2. current liability £4,825
  3. current asset £5,025
  4. current liability £5,075

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 – £4,800 + £25
  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 – 16 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 directors of lucy Ltd are completing the accounts for the year ended 31 December 2022.

They discover that the Inventory at the start of the financial year at 1 January 2022 was over-valued by £100k.

What is the effect of correcting this error in the accounts?

Select ONE answer:

  1. Profit for the year ended 31 December 2022 DECREASE & Revenue reserves brought forward as at 1 January 2022 DECREASE
  2. Profit for the year ended 31 December 2022 DECREASE & Revenue reserves brought forward as at 1 January 2022 INCREASE
  3. Profit for the year ended 31 December 2022 INCREASE & Revenue reserves brought forward as at 1 January 2022 DECREASE
  4. Profit for the year ended 31 December 2022 INCREASE & Revenue reserves brought forward as at 1 January 2022 INCREASE

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.

Accounting Multiple Choice Question – 10 June 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

The trial balance totals are

Debit £500 150 credit £500 000

Which error could have caused the difference?

Select ONE answer:

  1. A credit purchase has only been recorded in a creditor’s account.
  2. A credit sale has not been recorded.
  3. A cash sale has only been recorded in the sales account.
  4. A credit sale has only been recorded in a debtor’s account.

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

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