For most transactions, where is the first entry made in the accounting records?

• In the trial balance

• In the ledger

• In a book of prime entry

Which of the following is correct?

• Capital = Assets + Liabilities

• Capital = Assets - Liabilities

• Capital = Liabilities - Assets

Which of the following will give cleared funds in the recipient's bank account on the same day as they are sent?

• BACS payment

• CHAPS payment

• Cheque payment

Which one of the following is not correct?

• An asset account will have a debit balance

• A liability account will have a debit balance

• An income will have a credit balance

The trial balance is:

• A listing of all the balances of the accounts in the main ledger

• A listing of some of the balances of the accounts in the main ledger.

• A first attempt at balancing an account

When an invoice is posted to a customer's sales ledger account, which of the following would you not expect to see entered in the sales ledger?

• Invoice date

• Invoice number

• Gross amount

• Net amount

The Sales returns day book lists:

• Items received back from customers by the stores department

• Credit notes issued to customers

• Reports of the profit made on sales for the month

Is the following statement True or False?

Suppliers' statements received can be ignored as the information should already be included in the purchases ledger.

• True

• False

How will a refund due to the buyer be acknowledged and documented?

• By means of an invoice

• By means of a credit note

How long are documents usually retained for?

• At least 2 years

• At least 6 years

• At least 5 years

• At least 3 years