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AAT Level 2 Intro to Bookkeeping Ch1&2

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Where is a financial document first recorded?

a)

Cash book

b)

Book of prime entry

c)

Sales day book

d)

Ledger accounts

2.

A customer who owes money to a business is known as....

a)

Trade receivable

b)

Trade payable

3.

A supplier owed money by the business is known as......,

a)

Trade receivable

b)

Trade payable

4.

Which of the following is an example of an asset?

a)

Sales

b)

Vehicle

c)

Bank loan

d)

Trade payable

5.

Which of the following is an example of a liability?

a)

Trade receivable

b)

Computer

c)

Bank Loan

d)

Money in the bank

6.

The Statement of Profit or loss shows:

a)

Income + Expenses = Profit

b)

Income - Liabilities = Profit

c)

Income - Expenses = Profit

7.

The Statement of Financial Position shows:

a)

Assets - Liabilities = Capital

b)

Assets + Liabilities = Capital

c)

Assets - Expenses = Capital

8.

What does the payables ledger control account contain?

a)

Customers who buy on a cash basis

b)

Customers who buy on a credit basis

c)

Suppliers who buy on a cash basis

d)

Suppliers who buy on a credit basis

9.

What does the receivables ledger control account contain?

a)

Customers who buy on a cash basis

b)

Customers who buy on a credit basis

c)

Suppliers who buy on a cash basis

d)

Suppliers who buy on a credit basis

10.

A document issued by the buyer to the seller to place an order is known as....

a)

delivery note

b)

purchase order

c)

invoice

d)

credit note

11.

A document issued by the seller to the buyer requesting payment for goods is known as....

a)

delivery note

b)

purchase order

c)

invoice

d)

credit note

12.

A prompt payment discount is deducted from the invoice sent to the customer

a)

True

b)

False

13.

This type of discount is given for purchases over certain quantities or amounts

a)

Bulk discount

b)

Trade discount

14.

If a customer takes up the prompt payment discount, what document will you issue to them?

a)

Delivery note

b)

Credit note

c)

Returns note

d)

Statement of account

15.

Which document shows the customer all the outstanding amounts due to the business?

a)

Delivery note

b)

Credit note

c)

Returns note

d)

Statement of account

16.

Bulk and Trade discount is always calculated before VAT on an invoice

a)

True

b)

False

17.

A document issued by the seller that reduces the amount owed by the buyer

a)

Purchase order

b)

Statement of account

c)

Credit note

d)

Invoice

18.

A postcode is an example of what type of coding?

a)

Numerical

b)

Alphabetical

c)

Alpha-numerical

19.

What is the reduced rate of VAT?

a)

5%

b)

10%

c)

15%

d)

20%

20.

In the five stages of accounting, what is the last stage?

a)

Financial transactions

b)

Trial balance

c)

Books of prime entry

d)

Ledger accounts