The main aim of Accounting is

• Maintain ledgers for every assets and liabilities

• To provide information to users

• Produce a trial balance

• To record every single transaction

A source document is

• Where transactions are recorded after recording into the prime entry books

• Where transactions are recorded at last

• Not an evidence to prove that the transaction occured

• The origin of the information that is recorded into the accounting books

Credit notes are issued

• When the seller delivers the goods to the buyer

• When the goods purchased on cash are returned to the seller by the buyer

• when there is not enough money in the bank to pay to the Seller

• When goods purchased on credit are returned by the buyer to the seller

Source documents gives information that is recorded in the __________

• Trial Balance

• Prime Entry Books

• General Journal

• Income Statement

Which of the following best describes the purpose of a purchase invoice?

• Issued by a supplier as a request for payment

• Sent to a supplier as a request for a supply

• Issued by a supplier listing details of recent transactions

• Sent to the supplier as a notification of payment

In which Prime entry book would discounts received be recorded?

• Cash Receipts Journal

• Cash Payments Journal

• General Journal

• Purchases Daybook

Where will credit notes be recorded

• Sales return daybook

• Cashbook

• Purchase Returns Daybook

• General Journal

Kaslan returns damaged goods to Sasini. In which book Sasini will record this transaction?

• Sales Return Journal

• Purchase Returns Journal

• Sales Journal

• Purchases Journal

Kaslan returns damaged goods to Sasini. In which book Sasini will record this transaction?

• Sales Return Journal

• Purchase Returns Journal

• Sales Journal

• Purchases Journal

Why do sellers give trade discounts to their customers?

• To encourage prompt payment

• To sell in bulk

• To sell the most cheapest goods

• To get payments in installments