Trade Receivables – The Multiple Choice Questions Blog

Accounting Multiple Choice Question – 26 February 2024

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

Alex the sole trader had receivables of £2,700 as at 1 December and during December made cash sales of £7,200, credit sales of £16,500 and received £15,300 from his credit customers.

The balance on Alex’s receivables account at the end of December was?

Select ONE answer:

£1,500
£3,900
£8,700
£11,100

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

Not correct
Correct – Bal b/d £2,700 + £16,500 credit sales – £15,300 payments = £3,900
Not correct
Not correct

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Accounting Multiple Choice Question – 20 February 2024

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

What is the correct double entry for discounts allowed?

Select ONE answer:

Debit Discounts allowed & Bank, Credit Receivables
Debit Discounts allowed & Bank, Credit Payables
Debit Receivables, Credit Discounts allowed & Bank
Debit Payables, Credit Discounts allowed & Bank

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

Correct
Not correct
Not correct
Not correct

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

Accounting Multiple Choice Question – 7 December 2023

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

Alex Trading has a Trade Receivable days ratio of 40 days based on year-end receivables.

Annual sales are £180,000 of which 13 % are cash sales.

What is the year end receivables figure based on a year of 360 days?

Select ONE answer:

£2,600
£17,400
£20,000
£45,200

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

Not correct
Correct –£180k * 0.87 = (£156.6 / 360) *40 = £17.4k
Not correct
Not correct

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

Accounting Multiple Choice Question – 29 November 2023

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

An extract from a Alex Trading Ltd’s trial balance is shown below:

Accounts Receivables control account – debit balances – DR £225,000
Accounts Receivables control account – credit balances – CR£2,800
Accounts Payables control account – debit balances – £3,200
Accounts Payables control account – credit balances – £261,000
Investment in another company – £12,000

How much should be shown as Accounts Receivables in the company’s financial statements?

Select ONE answer:

£222,200
£228,200
£237,400
£240,200

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

Not correct
Correct – £225,000 + £3,200
Not correct
Not correct

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

Accounting Multiple Choice Question -14 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

The following data is available at the end of a financial year for Alex Trading Ltd:

opening inventory – £500,000
purchases – £2,250,000
closing inventory – £750,000
gross profit margin – 50 %
Trade receivables collection period – 60 days

Sales are all made on credit and accrue evenly over the 360-day accounting period.

What is the value of trade receivables at the year-end?

Select ONE answer:

£333,333
£375,000
£500,000
£666,667

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

Not correct
Not correct
Not correct
Correct – COS = £500k + £2,250k – £750k = £2M * 2 = £4M revenue / 360 * 60 == > £666,667

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

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