Tag: Topic 7

Accounting Multiple Choice Question – 21 August 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 Ltd has a balance of £3,200 (debit) on its tax account as at 13 December 2022 relating to the tax payable on the 2021 profits.

Alex Ltd’s estimated tax liability for the year to December 2023 is £24,500.

The tax charge in the income statement for the year ended 13 December 2023 is?

Select ONE answer:

  1. £21,300
  2. £24,500
  3. £27,700
  4. £30,900

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 3

  1. Not correct
  2. Not correct
  3. Correct — > B/d £3,200 + C/d of £24,500 = £27,700
  4. Not correct

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Accounting Multiple Choice Question – 20 August 2024

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

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As at 30 June 2023 Alex plc had £1m 8% loan notes in issue, interest being paid half-yearly on 30 June and 31 December each year.

On 30 September 2023, the company redeemed £250,000 of these loan notes at par, paying interest due up to that date.

On 1 April 2024 Alex plc issued £500,000 7% loan notes at par, interest payable half-yearly on 31 March and 30 September.

What figure should appear in the company’s income statement for finance costs in the year ended 30 June 2024?

Select ONE answer:

  1. £88,750
  2. £82,500
  3. £65,000
  4. £73,750

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct –> July – September 1,000,000 × 8% × 3/12 + October – March 750,000 × 8% × 6/12 + April – June 750,000 × 8% × 3/12 & 500,000 x 7% x 3/12

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Accounting Multiple Choice Question – 19 August 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 general journal entries may be accepted as being correct according to their narratives?

Select ONE answer:

  1. Dr Wages expense account – £87,000 Cr NCA Buildings account – £87,000 (Labour and materials used in construction of a Building extension in a factory)
  2. Directors’ personal accounts – £70,000 Cr Directors’ remuneration – £70,000 (Directors’ bonuses transferred to their “current” accounts)
  3. Dr Suspense account £10,000 Cr Sales account £10,000 (Correction of £10,000 undercast of the sales account)
  4. Dr Discount received account £2,000 Cr Suspense account £2,000 (Correction of misposting of discount received from cash book)

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 –> (1) is wrong because labour and construction costs of building a factory would be debited to non-current assets cost. (2) is wrong because directors’ remuneration would be debited to the expense account, and (4) is wrong because a mis posting of discount received would be a debit to suspense and a credit to the discount received account.
  4. Not correct

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Accounting Multiple Choice Question – 18 August 2024

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

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When Alex plc’s trial balance failed to agree, a suspense account was opened for the difference.

The trial balance totals were:

Debit £864,390
Credit £860,930

The company does not have control accounts set-up for its receivables and payables ledgers.

What will the balance on Alex plc’s suspense account be after making the necessary entries to correct the errors affecting the suspense account?

Select ONE answer:

  1. £2,940 Debit
  2. £15,060 Credit
  3. £14,140 Debit
  4. £9,860 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 1

  1. Correct- Cr Opening Balance £3,460 + Plant Asset (£2,800 * 2) £5,600 – Share Capital £3,000 – Motor Vehicles £9,000 = Cr Closing balance == > £2,940 Debit
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 17 August 2024

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

When Alex plc’s trial balance failed to agree, a suspense account was opened for the difference.

The trial balance totals were:

Debit £864,390
Credit £860,930

The company does not have control accounts set-up for its receivables and payables ledgers.

Which of the following errors can be corrected without affecting the suspense account?

Select ONE answer:

  1. In recording an issue of shares at par, cash received of £333,000 was credited to the equity share capital account as £330,000.
  2. Cash £2,800 paid for plant repairs was correctly accounted for in the cash book but was credited to the plant asset account.
  3. A cheque for £78,400 paid for the purchase of a car was debited to the motor vehicles account as £87,400.
  4. A contra between the receivables ledger and the payables ledger for £1,200 was debited in the receivables ledger and credited in the payables ledger.

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.