Tag: Topic 5

Accounting Multiple Choice Question – 6 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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The inventory records of a Alex Trading Ltd show the following information for product Z:

  • 1 January: opening balance – 100 units at a value of £3
  • 3 January: receipts into inventory – 50 units at a value of £4
  • 8 January: inventory issued – 120 units

What is the value of the inventory issued on 8 January using the First In First Out (FIFO) method?

Select ONE answer:

  1. £360
  2. £380
  3. £410
  4. £420

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 == > £100 * £3 + 20 * £4
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question -5 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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Which transaction would appear in BOTH the receipts and payments account and the income and expenditure account of Milford cricket club?

Select ONE answer:

  1. the club bank balance
  2. the depreciation of the club pavilion
  3. the purchase of a motorised lawn mower
  4. the rent of the cricket ground

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 -4 October 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

Alex Trading sells some of its inventory for £100 on credit to a customer.

The inventory originally cost £50.

Which statement below reflects the effect of this transaction on the statement of financial position?

Select ONE answer:

  1. current assets: decrease by £50 AND owner’s capital: decreases by £50
  2. current assets: decrease by £50 AND owner’s capital: increases by £50
  3. current assets: increase by £50 AND owner’s capital: decreases by £50
  4. current assets: increase by £50 AND owner’s capital: increases by £50

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.

Accounting Multiple Choice Question -30 September 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

Closing inventory has been undervalued.

What is the effect of this error on the financial statements?

Select ONE answer:

  1. net current assets: no effect AND profit for the year: understated
  2. net current assets: overstated AND profit for the year: overstated
  3. net current assets: understated AND profit for the year: no effect
  4. net current assets: understated AND profit for the year: 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

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

Accounting Multiple Choice Question – 28 September 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 a businessman introduces capital into his business, the transaction is debited in the cash book and credited to his capital account.

Of which accounting principle is this an example?

Select ONE answer:

  1. business entity
  2. going concern
  3. matching
  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 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.