Accounts Payable 2024

Michael runs a trading business. What are the two transactions involved in a credit transaction for his business?

• The exchange of inventory and the exchange of cash at a later date

• The exchange of services and the exchange of cash immediately

• The exchange of inventory and the exchange of services

• The exchange of cash and the exchange of services at a later date

Abigail runs a small trading business. What is the purpose of an invoice in her business?

• To verify the details of a credit transaction

• To record cash transactions only

• To provide a receipt for cash payments

• To list the inventory available for sale

Ava and Liam are reviewing an invoice. What is the quantity of Egyptian vases sold in the provided invoice example?

• 10

• 15

• 20

• 25

Samuel received an invoice for his recent purchase. What is the total GST amount in the provided invoice example?

• $20

• $30

• $40

• $50

Maya is reviewing an invoice for her small business. What is the importance of noting credit terms on the invoice?

• To specify the payment due date and any discounts available.

• To calculate the total amount due.

• To track inventory levels.

• To manage employee salaries.

Lily is preparing financial statements for her small business. What is the importance of source documents in the accounting process?

• They provide verifiable and faithful representation of financial events.

• They help in calculating the firm's profit.

• They are used to track inventory.

• They are used to manage employee salaries.

Rohan is starting a trading business. What is the main item he is likely to purchase on credit?

• Office supplies

• Inventory

• Equipment

• Services

Daniel runs a trading business and is considering purchasing inventory. Explain why he should include ethical considerations in his purchasing decisions.

• To ensure the quality of the inventory

• To maintain a good relationship with suppliers

• To uphold the integrity and reputation of the business

• To reduce the cost of inventory

Aiden is managing the accounts for a trading business. Explain the role of the Purchases Journal in his work.

• To record sales transactions

• To record credit purchases of inventory

• To record cash payments

• To record employee salaries

Mason is reviewing the payment details for an Account Payable. What is not included in the payment?

• GST

• Service charge

• Interest

• Discount