AAT Level 2 POBC Payment Methods

John's Autos wants to be paid in something that is similar to cash but not cash for a car

• Faster payments

• Credit Card

• CHAPS

• Bank draft

Variable expenses incurred by a salesperson over the month

• Cash

• Credit Card

• CHAPS

• Bank draft

£100 to be paid on 1st of each month for the rental of a garage lock up

• Direct Debit

• Credit Card

• Standing Order

• Bank draft

Tea and coffee required to be purchased from the local shop

• Credit Card

• Cash

• CHAPS

• Direct Debit

Which one of the following will not reduce funds in the account on the date of payment/posting?

• Cheque

• Bank draft

• Cash withdrawal

• CHAPS

Which of the following is a reasonable approach to making payments

• To pay late and wait to be chased before payment

• To pay as late as possible but not late

• To pay a supplier late because they cannot complain

• To pay immediately to clear the creditor from the accounts

Cheques from customers should be gathered up and paid into the bank on the last day of the month

• True

• False

Receipts in the bank are shown in the cash book as credits

• True

• False

Payments from the bank are shown on the bank statement on the debit side

• True

• False

Payments from the bank are shown on the credit side of the cash book

• True

• False