ITBK-Accounting system

Where do we record information from invoices and credit notes?

• Journal Book

• Books of Prime Entry

• Nominal Ledger

• Books of Transactions

Once we have totalled all the invoices in the book of prime entry, we will post the information to the...?

• Accounts

• Statements

• Trial Balance

• Journal

All the balances will be listed in the...

• Trial Balance

• Balance List

• Final Balances

• Trial List

What is the third stage of the accounting system?

• Books of Prime Entry

• Trial Balance

• Source Documents

• Accounts

• Financial Statements

What is the aim of the accounting system?

• To keep accountants employed

• To ensure that information is correctly fed to the financial statements

• To sort information into categories

• To stop staff from spending too much money

Sandra has bought 6 DVDs for £10 each and sold them for £15 each. What is her total profit?

• £60.00

• £45.00

• £90.00

• £30.00

What do we call the day to day running costs of the business?

• Assets

• Liabilities

• Expenses

• Income

Which of these are examples of a liability?

• Rent

• Loan

• Supplier's invoice

• Customer's invoice

The cost of buying petrol for a van will be recorded in the same account as the van itself. True or false?

• True

• False

Every transaction affects at least two accounts. True or false?

• True

• False