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Business Accounting Volume 1
Multiple choice questions from the book

A growing practice of examining boards is to set multiple choice questions in accounting. In fact, this has become so popular with examiners that all the largest professional accounting bodies now use them, particularly in their first level examinations.

Multiple choice questions give an examiner the opportunity to cover large parts of the syllabus briefly, but in detail. Students who omit to study areas of the syllabus will be caught out by an examiner’s use of multiple choice questions. It is no longer possible to say that it is highly probable a certain topic will not be tested - the examiner can easily cover it with a multiple choice question.

We have deliberately included sets of twenty multiple choice questions at given places in this textbook, rather than a few at the end of each chapter. Such questions are relatively easy to answer a few minutes after reading the chapter. Asking the questions later is a far better test of your powers of recall and understanding. It also gives you practice at answering questions covering a range of topics in one block, as in an examination.

Each multiple choice question has a ‘stem’ (a part which poses the problem), a ‘key’ (which is the one correct answer), and a number of ‘distractors’, i.e. incorrect answers. The key plus the distractors are known as the ‘options’.

If you do not know the answer, you should guess. You may be right by chance, or you may remember something subconsciously. In any event, unless the examiner warns otherwise, you will be expected to guess if you don’t know the answer.

Click on the links below to access the questions from the book.



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