AAT L2 The Accounting System Quiz

A 'cash sale' in accounting terms is:

• A sale involving notes and coins

• A sale with immediate payment

• A sale with payment in the future

A financial document is first recorded in a book of prime entry. True or false?

• True

• False

The following groups are ALL books of prime entry:

• Cash book, petty cash book, payables ledger

• Sales day book, sales returns day book, receivables ledger

• Cash book, petty cash book, sales day book

Transactions recorded in the books of prime entry are transferred to:

• Ledger accounts

• A trial balance

• A petty cash book

A trade receivable is:

• A supplier owed money by the business

• A customer who owes money to a business

• A customer who settles straightaway using cash

In double-entry bookkeeping, transactions are recorded using: Which one of these options is correct?

• Two debits

• Two credits

• One debit and one credit

The payables ledger contains the ledger accounts for: Which one of these options is correct?

• Customers

• Suppliers

• Expenses

A liability of a business is: Which one of these options is correct?

• An amount owed by that business

• An item owned by that business

• A cash fund for business expenses

On the basis of the figures shown, how much does Style & Tile owe its suppliers?

• £52,800

• £10,500

• £6,720

• £3,000

On the basis of the figures shown, how much do the customers owe Style & Tile?

• £52,800

• £10,500

• £6,720

• £3,000