Level 2 revision-Synoptic Lesson 1

A carried down bank balance on the ________ side of the cash book means that there is money in bank.

• Debit

• Credit

The VAT fraction is

• 1/2

• 1/3

• 1/6

• 1/12

A document sent by the seller to a trade receivable stating the amount payable and date due is a

• Remittance Advice

• Bank Statement

• Invoice

• Statement of Account

A cash purchase of £85 has been recorded in the cash book only. This will

• cause an imbalance in the trial balance

• not cause an imbalance in the trial balance

"I've had an email from the accounts supervisor at Jones Ltd concerned about their statement of account. She says there are sales invoices that she knows nothing about. I wonder if they should be for T Jones and that we have made an error of ​ ​ (a)  

• commission
• original entry
• principle
• reversal of entries

A ​ (a)   would be used to pay £380 for new tyres for the company van.

• debit card
• BACS
• direct debit
• faster payment

Travis Limited manufactures bicycles from components. Classify the following cost by function (production, administration, or selling and distribution)... Advertising costs

• Production

• Selling and Distribution

• Administration

When costing a future product the labour cost may need to be estimated by using planned labour rates and expected times to make the product.

• True

• False

Financial accounts provide the best source of data for future costs.

• True

• False