Control Accounts

Why do business give discount allowed ?

• For Bulk buying

• For Prompt payment

• To Avoid error

• To check arithmetical accuracy

What is meant by return outward?

• Sales return

• Bad debt

• Purchase return

• trade discount

Cash purchases do not affect the creditors' control accounts at all - True or False

• True

• False

What is bad debt?

• It is a Known loss

• It is a discount

• It is a sales return

• It is a depreciation

Trade creditors are the same as trade payables - True / False

• True

• False

You owe Barbi $100 for goods you purchased last month. Is Barbi a trade payable or trade creditor?

• Trade Creditor

• Trade Payable

A trade debtor is the same as a trade receivable - True / False

• True

• False

Urooj owes you $100 for goods she purchased last month. Is she a trade debtor or a trade creditor.

• Trade debtor

• Trade Creditor

Purpose of control accounts.

• To calculate profit made by the business

• To check the accuracy of the entries and locate the errors

What are the Main Control Accounts?

• Sales ledger control accounts and Purchase ledger control accounts.

• Cash book and Petty cash book

• Sales day book and Purchase day book