Tutorial 2 FA 1

Which account balance is normally in credit?

• Trade receivables

• Trade payables

• Inventory

• Cash

Which transactions would give rise to a credit entry?

(i) Cash sales

(ii) Purchase of goods for resale on credit

(iii) Capital introduced

• (i) only

• (i) and (ii) only

• (i) and (iii) only

• (i), (ii) and (iii)

A business owner takes $1,000 from its till for personal use. What is the double entry for this?

• DR Drawings, CR Cash

• DR Cash, DR Drawings

• DR Drawings, CR Capital

• DR Capital, CR Drawings

Which will normally show as a debit balance in the ledger accounts?

• Sales

• Non current assets

• Trade payables

• Bank loan

Which documents are businesses required to retain?

(i) invoices

(ii) bank statements

(iii) Records of employees' pay and deductions

(iv) Employee emails

• (i) and (ii) only

• (i) and (iii) only

• (i), (ii) and (iii) only

• all of the above

Yuan’s accounting system uses codes to provide information about the item being coded.

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

• Codes should be randomly assigned to items

• Each unique code should apply to a single item

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

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

Which financial document is sent by the supplier every month, listing all the transactions between them and the customer during the month?

• Purchase invoice

• Credit note

• Supplier statement

• Goods received note

What is the function of accounting to businesses?

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

• Eliminate financial risk from business decisions.

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

• Obtaining sales for the company to increase its financial profits

What is an advantage of a computerised accounting system?

• Generate financial documents for transactions efficiently

• Low initial cost of investment

• Eliminates the risk of error in accounting records

• Enables all users to edit financial records as needed

Which document or report is produced from a sales computerised system?

• Customer statement balance

• Purchase order

• Master list of vendor information

• List of past payments made to a specific supplier.