Flow of Transactions Quiz

What is the first step in the flow of transactions?

• Ledgers

• Transactions

• Income statement

• Trial balance

Which step comes after the ledgers in the flow of transactions?

• Books of prime entries

• Statement of Financial Position

• Trial balance

• Transactions

What is the purpose of the income statement in the flow of transactions?

• To list transactions

• To show performance of entity

• To summarize debits and credits

• To record invoices

What are source documents used for?

• To find original information

• To create new information

• To delete information

• To hide information

Which of the following is an example of a source document?

• Sales invoice

• Shopping list

• Birthday card

• Newspaper

Who uses source documents?

• All businesses and organizations

• Only schools

• Only families

• Only sports teams

Which of the following is an example of a source document?

• Invoice

• Notebook

• Textbook

• Magazine

What is a credit note used for?

• To record a sale

• To correct an invoice

• To write a story

• To draw a picture

Which document is used to deposit money into a bank account?

• Cheque counterfoil

• Paying-in slip

• Receipt

• Petty cash voucher

What is a receipt used for?

• To show proof of payment

• To write a letter

• To make a phone call

• To draw a map