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AAT Level 2 - ITBK Accounting for Sales recap

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The income generated from the goods in which a business trades is known as?

a)

Capital Income

b)

Revenue Income

2.

Income generated from the sale of an asset

a)

Capital Income

b)

Revenue Income

3.

What type of discount is a prompt payment discount given to a customer?

a)

Discount allowed

b)

Discount received

4.

In which daybook is a credit note for a discount allowed recorded?

a)

sales day book

b)

sales returns daybook

c)

discounts allowed day book

5.

In which daybook is an invoice sent to a customer recorded?

a)

sales day book

b)

sales returns daybook

c)

discounts allowed day book

6.

Which accounts records the total of all the amounts owed by customers?

a)

sales account

b)

sales returns account

c)

Receivables ledger control account

d)

VAT account

7.

A credit balance in the VAT control account means the business owes VAT to HMRC

a)

True

b)

False

8.

What is the double entry for recording a credit sale?

a)

Credit RLCA (gross), Debit VAT, Debit Sales (net)

b)

Debit RLCA (gross) Credit VAT, Credit Sales (net)

9.

Are credit sales debited or credited in the receivables ledger accounts?

a)

Debited

b)

Credited

10.

What document received from a customer tells the seller that they have made a payment?

a)

Statement of account

b)

Remittance advice

c)

Invoice

d)

Credit note