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WorksheetsBusiness documents, sales, purchases & returns formative quiz
Total questions: 35
Worksheet time: 1hrs 12mins
Which business document is used to request the items to be purchased?
Purchase requisition
Invoice with payment details
Delivery note for shipped goods
Purchase order with item list
Select all types of business documents that can be used for purchasing.
Purchase requisition
Purchase order
Delivery note
Invoice
Debit or returns note
What is the main purpose of an invoice in business transactions?
To detail the goods or services supplied and the amount due for payment
To request the items to be purchased
To accompany goods being dispatched to the customer
To request an allowance for goods returned
Which document is issued by a supplier to a customer to indicate the amount of refund or allowance due?
Credit note
Statement of account showing monthly balance
Remittance advice sent by customer
Receipt for payment received
What is the purpose of a statement of account?
To show the amount owing to the supplier at the end of each month
To acknowledge receipt of money for goods or services
To let the supplier know a payment has been made
To indicate the amount of refund due
What does a receipt acknowledge?
Receipt of money for goods or services rendered
Amount owing to the supplier
Refund or allowance due
Payment made for goods or services
Select all the documents that are issued by the supplier. (Choose all that apply)
Credit note
Statement of account
Remittance advice
Receipt
Which of the following best describes a cash transaction?
Payment is made immediately when goods are sold or purchased
Payment is made at a later date after goods are sold or purchased
Payment is made by cheque only
Payment is made only for services
Which of the following is an example of a credit transaction?
Sold goods on credit to Jane Doe valued $400
Sold goods receiving cash of $200
Purchased goods paying cash of $300
Purchased goods on credit from John Doe $500
Which of the following is NOT an example of a cash transaction?
Sold goods receiving cash of $200
Purchased goods paying cash of $300
Sold goods on credit to Jane Doe valued $400
Payment made immediately for goods
What is the main difference between cash transactions and credit transactions?
Cash transactions are paid immediately, credit transactions are paid later
Cash transactions are paid by cheque, credit transactions are paid by cash
Cash transactions are only for services, credit transactions are only for goods
Cash transactions are paid by card, credit transactions are paid by cash
Which type of discount is recorded in the accounts?
Cash discount
Trade discount
Both cash and trade discounts
Neither cash nor trade discounts
Select all statements that are true about trade discounts.
Trade discounts are not recorded in the accounts.
Trade discounts only show on the invoice.
Trade discounts are given to trade customers, such as retailers or wholesalers.
Trade discounts are given for immediate payment.
What is the main purpose of books of original entry in accounting?
To record all accounting transactions before they are posted to the ledgers.
To summarize all transactions after posting to the ledgers.
To calculate profits and losses for the business.
To store information about customers only.
Which of the following are books of original entry? Select all that apply.
Sales Day Book
Purchases Day Book
Return inwards day book
General Journal
Inventory Book
What does the Sales Day Book contain?
All credit sales.
All cash purchases and sales.
All returns from customers.
All payments to suppliers.
Customers who buy goods from a business on credit are known as:
Debtors/Accounts Receivable.
Creditors/Accounts Payable.
Shareholders.
Employees.
After posting to the sales day book, what is the next step for credit sales entries?
The entries must be posted to the sales ledger.
The entries are deleted from the records.
The entries are sent to customers for approval.
The entries are ignored.
At the end of the period, where is the total of the credit sales posted?
To the credit side of the sales account in the general ledger.
To the debit side of the purchases account.
To the cash book only.
To the petty cash book.
What does the Purchases Day Book contain?
All credit purchases
All cash sales and purchases
Only cash purchases
All types of business transactions
Who are the suppliers that sell goods to a business on credit called?
Creditors or Accounts Payable
Debtors or Accounts Receivable
Customers
Employees
The Purchases Day Book is essentially a list of which of the following?
Creditors or Accounts Payable
Debtors or Accounts Receivable
Employees
Assets
After posting to the Purchases Day Book, what is the next step for the entries?
They must be posted to the purchases ledger
They are ignored
They are sent to customers
They are deleted
Which of the following are correct steps for posting credit purchases according to the rules for posting to the purchases ledger? Select all that apply.
Credit purchases are posted one by one to the credit side of each supplier’s account in the purchases ledger.
At the end of the period, the total of the credit purchases is posted to the debit side of the purchases account in the general ledger.
Credit purchases are posted to the debit side of each supplier’s account.
Credit purchases are posted only at the end of the year.
What is the main purpose of the Return Inwards Day Book (Sales Return Journal)?
To record all customer returns
To keep track of all sales made to customers, including returns
To list all products available for sale
To record payments received from customers
Which statement best describes what is found in the Return Inwards Day Book?
A list of customer returns
A list of items sold to customers
A record of payments made by customers
A summary of all business expenses
After posting to the returns inwards day book using credit notes, what is the next step?
The entries must be posted to the sales ledger
The entries are deleted from the records
The entries are sent to customers for approval
The entries are ignored until the end of the year
At the end of the period, where is the total of the returns inwards posted?
To the debit side of the returns inwards account in the general ledger
To the credit side of the customer's account in the sales ledger
To the credit side of the returns inwards account in the general ledger
To the debit side of the customer's account in the sales ledger
What is the main purpose of the Return Outwards Day Book (Purchases Return Journal)?
To record all purchases made by a business
To keep a list of purchase returns
To track sales to customers
To record payments to suppliers
What does the Return Outwards Day Book contain?
All purchases made
All purchases returned
All sales made
All payments received
After posting to the returns outwards day book using the debit notes, what is the next step?
Post the entries to the purchases ledger
Record the entries in the sales ledger
Send the entries to the bank
Ignore the entries
Which of the following are steps for posting returns outwards at the end of the period? Select all that apply.
Post the total of the returns outwards to the credit side of the returns outwards account in the general ledger
Post the returns outwards one by one to the debit side of each supplier’s account in the purchases ledger
Record the returns outwards in the cash book
Post the returns outwards to the sales ledger
Which step in the accounting cycle involves recording transactions in the books of original entry?
Journalizing
Posting to Ledgers
Trial Balance
Adjusting & closing entries
Select all the steps that are part of the accounting cycle.
Source Document
Trial Balance
Income Statement
Posting to Ledgers
What is the final step in the accounting cycle?
Adjusting & closing entries
Preparation of final accounts (Income Statement & Balance Sheet)
Posting to Ledgers
Journalizing
