Transaction Types Quiz

Why is it important to record all transactions accurately?

• To meet legal requirements and aid the smooth running of the business

• To increase the number of transactions

• To avoid paying taxes

• To confuse competitors

Which of the following is an example of an internal transaction?

• Expense claims by employees

• Paying a supplier

• Buying an asset

• Cash sales

What type of transaction is paying a supplier?

• External

• Internal

• Income

• Expenditure

Which of the following is an example of an expenditure transaction?

• Buying an asset

• Cash sales

• Expense claims by employees

• Paying a supplier

Which of the following is an example of a payroll transaction?

• Cheque payments

• Corporation tax

• Wages & salaries

• Cash withdrawals

What is an example of a transaction related to taxes?

• National insurance

• Corporation tax

• Cheque receipts

• Supplier invoices

Which of the following is a type of bank account transaction?

• PAYE

• BACS & CHAPS

• Pensions

• Asset register

What are financial transactions?

• Actions by a business that involve money either going into or out of a business

• Actions by a business that involve only non-monetary exchanges

• Actions by a business that involve only internal processes

• Actions by a business that involve only employee management

What does HMRC stand for?

• Her Majesty's Revenue & Customs

• His Majesty's Revenue & Customs

• Her Majesty's Royal Commission

• His Majesty's Royal Commission

What is the role of HM Revenue & Customs (HMRC)?

• Collection of all types of taxes

• Management of public transportation

• Regulation of financial markets

• Oversight of educational institutions