Tag: Topic 5

Accounting Multiple Choice Question – 2 January 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 is an aspect of relevance, according to the IASB’s Conceptual Framework?

Select ONE answer:

  1. Neutrality
  2. Free from error
  3. Completeness
  4. Materiality

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 – 19 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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Lucy Walton runs a small on-line business, selling silver jewellery that she makes in her house.

She uses a variety of equipment to make the silver jewellery, which she depreciates each year.

She keeps the method of depreciation the same from one financial year to the next.

Select ONE answer:

  1. Materiality
  2. Consistency
  3. Business entity
  4. Prudence

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 – The concept of ‘consistency’ requires that accounting methods are kept the same from one accounting period to the next. This ensures that financial statements from one year can be compared to financial statements for the following year.
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 20 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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In preparing the income statement, only realised profits and not anticipated profits must be brought into account.

In addition, all possible losses must also be taken into account immediately.

Which accounting principle does this describe?

  1. accruals
  2. consistency
  3. going concern
  4. prudence

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

Accounting Multiple Choice Question – 18 November 2023

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

apple devices books business coffee
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Development costs are capitalised by Alex Trading plc

Which accounting principle is being applied?

Select ONE answer:

  1. business entity
  2. historic cost
  3. matching / accruals
  4. materiality

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

Accounting Multiple Choice Question – 7 October 2023

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

Photo by Olya Kobruseva on Pexels.com

Alex Trading Ltd uses the weighted average cost (AVCO) method of stock valuation.

During March the following transactions took place.

  • 1 March – opening stock 200 units at £6.00 per unit – £1,200
  • 14 March – received 300 units at £6.50 per unit – £1,950
  • 20 March – issued 250 units to production at £7.00 per unit – £1,750
  • 28 March – received 100 units at £6.70 per unit – £670

What is the value of stock at 31 March?

Select ONE answer:

  1. £2,195
  2. £2,245
  3. £2,295
  4. £2,450

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 == > (£1,200 + £1,950) / 500 = £6.3 * 250 + £670
  3. Not correct
  4. Not correct

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