AAT Level 2 Intro to Bookkeeping Ch1&2

Where is a financial document first recorded?

• Cash book

• Book of prime entry

• Sales day book

• Ledger accounts

A customer who owes money to a business is known as....

• Trade receivable

• Trade payable

A supplier owed money by the business is known as......,

• Trade receivable

• Trade payable

Which of the following is an example of an asset?

• Sales

• Vehicle

• Bank loan

• Trade payable

Which of the following is an example of a liability?

• Trade receivable

• Computer

• Bank Loan

• Money in the bank

The Statement of Profit or loss shows:

• Income + Expenses = Profit

• Income - Liabilities = Profit

• Income - Expenses = Profit

The Statement of Financial Position shows:

• Assets - Liabilities = Capital

• Assets + Liabilities = Capital

• Assets - Expenses = Capital

What does the payables ledger control account contain?

• Customers who buy on a cash basis

• Customers who buy on a credit basis

• Suppliers who buy on a cash basis

• Suppliers who buy on a credit basis

What does the receivables ledger control account contain?

• Customers who buy on a cash basis

• Customers who buy on a credit basis

• Suppliers who buy on a cash basis

• Suppliers who buy on a credit basis

A document issued by the buyer to the seller to place an order is known as....

• delivery note

• purchase order

• invoice

• credit note