Basic Accounting BKCL AAT L2 (1)

Source documents in accounting include invoices, credit notes and Statement of Profit or Loss.

• True

• False

The ledger contains the accounts of a business and is often divided up into sections, for example sales ledger and purchases ledger.

• True

• False

Final accounts include the profit and loss account and the balance sheet

• True

• False

A credit sale is a sale where payment is received from the customer at a later date.

• False

• True

• Whatever

A cash purchase is a transaction which only involves banknotes and coins.

• False

• True

Double-entry book-keeping involves making two entries in each account for every transaction.

• True

• False

In a profit and loss account, profit is calculated by deducting expenses from income.

• Yes

• No

Capital is a short-term loan given to a business by someone other than the owner.

• No

• Yes

The accounting equation states that the assets of a business plus its liabilities equals its capital.

• Er, no way pedro

• Er, deffo

The accounting equation states that the assets of a business plus its liabilities equals its capital.

• False

• True