Introduction to Business and Recording Transactions

Which document lists transactions between a supplier and customer during the month?

• A.   Purchase invoice

• B.   Credit note

• C.   Supplier statement

• D.   Goods received note

What is an advantage of a computerized accounting system?

• A.   Generate financial documents for transactions efficiently

• B.   Low initial cost of investment

• C.   Eliminates the risk of error in accounting records

• D.   Enables all users to edit financial records as needed.

Yuan’s accounting system uses codes to organise and provide information about items.

Which of the following answers is considered best practice for coding items in Yuan’s accounting system?

• A.   Codes should be randomly assigned to items.

• B.   Each unique code should apply to a single item.

• C.   Any user of the accounting system should be able to change the codes of items.

• D.   Codes should hide the nature of the item they are assigned to.

A business sells goods to a customer for $3,000. The customer returns half of the goods as faulty.

What document does the business issue to the customer for the returns?

• A.   Debit note

• B.   Remittance advice

• C.   Credit note

• D.   Goods received note

What purpose does the accounting function provide to businesses?

• A.   Present financial information in a clear and concise report so that readers may understand

• B.   Eliminate financial risk from business decisions.

• C.   Ensure financial records are entirely free from errors and mistakes.

• D.   Obtaining sales for the company to increase its financial profits

Which is an appropriate method of dealing with confidential business information that is no longer needed?

• A.   Disposing of documents and electronic data in general waste.

• B.   Archiving documents and electronic data in a secure location or server.

• C.   Hand over documents and electronic data to the recycling firm.

• D.   Publishing the information publicly online.

… is financial document containing the confirmed prices of goods that a supplier has delivered.

What are the features of an effective coding system?

i.             Everyone can introduce new codes

ii.              Multiple items share codes

iii.             Codes reflect the substance of the assigned item

iv.            Codes follow a standard style and format

• A.   i) and ii) only

• B.   iii) and iv) only

• C.   i) and iii) only

• D.   ii) and iv)only

… occur when goods or services are given to customers in exchange for a future receipt.

… is financial document showing the amount of money a customer needs to pay for goods purchased.