AAT Level 2 - ITBK Accounting for Sales recap

The income generated from the goods in which a business trades is known as?

• Capital Income

• Revenue Income

Income generated from the sale of an asset

• Capital Income

• Revenue Income

What type of discount is a prompt payment discount given to a customer?

• Discount allowed

• Discount received

In which daybook is a credit note for a discount allowed recorded?

• sales day book

• sales returns daybook

• discounts allowed day book

In which daybook is an invoice sent to a customer recorded?

• sales day book

• sales returns daybook

• discounts allowed day book

Which accounts records the total of all the amounts owed by customers?

• sales account

• sales returns account

• Receivables ledger control account

• VAT account

A credit balance in the VAT control account means the business owes VAT to HMRC

• True

• False

What is the double entry for recording a credit sale?

• Credit RLCA (gross), Debit VAT, Debit Sales (net)

• Debit RLCA (gross) Credit VAT, Credit Sales (net)

Are credit sales debited or credited in the receivables ledger accounts?

• Debited

• Credited

What document received from a customer tells the seller that they have made a payment?

• Statement of account

• Remittance advice

• Invoice

• Credit note