ITBK Week 2 Chp1 Recap

Where is a financial document first recorded?

• In the bank account

• In a book of prime entry

• In the ledger

• In the cash book

From the books of prime entry, where are the financial transactions then recorded?

• In the ledger accounts

• In the trial balance

• In the cash book

• In the petty cash book

What is the name for a supplier who is owed money by the business?

• Trade Receivable

• Trade Payable

What is the name for a customer who owes money to the business?

• Trade Receivable

• Trade Payable

A liability of a business is:

• An amount owed by that business

• An item owned by that business

• A cash fund for business expenses

An asset of a business is:

• An amount owed by that business

• An item owned by that business

• A cash fund for business expenses

A payables ledger control account contains the total of accounts of:

• Customers who buy goods in cash

• Customers who buy goods on credit

• Suppliers who sell goods for cash

• Suppliers who sell goods on credit

A receivables ledger control account contains the total of accounts of:

• Customers who buy goods in cash

• Customers who buy goods on credit

• Suppliers who sell goods for cash

• Suppliers who sell goods on credit

What does the statement of profit and loss show?

• Income + Expenses = Profit

• Income - Expenses = Profit

• Income - Liabilities = Profit

What is the accounting equation?

• Assets + Liabilities = Capital

• Assets - Expenses = Capital

• Assets - Liabilities = Capital