Financial information and data security Osborne

Is a certificate of incorporation for a company a primary or secondary source of information?

• Primary

• Secondary

Is A tutorial book about personal tax a primary or secondary source of information?

• Primary

• Secondary

Is an act of Parliament a primary or secondary source of information?

• Primary

• Secondary

A business always uses the same method for inventory valuation. This is an example of

• Understable information

• Accurate information

• Consistent information

• Timely information

It is important to check a remittance advice when it is received because:

• There might be an error with a product code quoted, resulting in the wrong goods being supplied

• The total might not agree with the total on the statement of account sent by the seller

• The wrong VAT rate may have been applied on the invoice sent

It is important for a seller to check a purchase order for goods when it is received because:

• The product code may not agree with the description of the goods and so it will need to be queried

• The total may not agree with the total on the statement of account sent by the seller

• It does not include a VAT calculation

It is important for a business that has bought goods to check a statement of account issued by the seller because:

• The VAT amounts will need to be recorded in the accounting system

• The amounts sent by the buyer in settlement of invoices must be correctly shown on the statement

• It might include bank charges which will need looking into

A favourable variance occurs when:

• sales are higher than budgeted

• costs are lower than budgeted

• sales are lower than budgeted

• costs are higher than budgeted

An adverse variance occurs when:

• sales are higher than budgeted

• costs are lower than budgeted

• sales are lower than budgeted

• costs are higher than budgeted

A business is most likely to be able to manage its cash position effectively by:

• Filling its bank statements safely and confidentially

• Maximising the number of payments made by electronic transfers

• Preparing a cash budget