Question 1

Which of the following is used by an entity to record details of a sale in the sales day book?

Accepted Answer

A)  Invoice 
B)  Order 
C)  Letter of enquiry 
D)  Delivery note 
A)  Invoice 
B)  Order 
C)  Letter of enquiry 
D)  Delivery note A

Question 2

A purchase order:

Accepted Answer

A)  Is sent to a supplier when goods are ordered 
B)  Is sent to a customer when they returned the goods 
C)  Is sent to a customer when they have bee undercharged 
D)  Is sent to a customer when a sale occurs 
A)  Is sent to a supplier when goods are ordered 
B)  Is sent to a customer when they returned the goods 
C)  Is sent to a customer when they have bee undercharged 
D)  Is sent to a customer when a sale occurs A

Question 3

Which of the following is not an example of source documentation?

Accepted Answer

A)  Sales invoice 
B)  Debit note 
C)  Credit note 
D)  The income statement 
A)  Sales invoice 
B)  Debit note 
C)  Credit note 
D)  The income statement D

Question 4

A statement:

Accepted Answer

A)  Is usually sent to a customer at the end of the month to show them the amount owing. 
B)  Is used to pay for goods 
C)  Is used to record payments made into the bank account 
D)  To record the amount of monies received from a customer 
A)  Is usually sent to a customer at the end of the month to show them the amount owing. 
B)  Is used to pay for goods 
C)  Is used to record payments made into the bank account 
D)  To record the amount of monies received from a customer

Question 5

A purchase invoice shows 10 items priced at £240 less trade discount of 20%. A cash discount of
2)5% is allowed if payment is made within 30 days. How much will the entity have to pay assuming payment is made within the 30 days?

Accepted Answer

A)  £2,340 
B)  £2,400 
C)  £1,920 
D)  £1,872 
A)  £2,340 
B)  £2,400 
C)  £1,920 
D)  £1,872

Question 6

A purchase invoice shows 10 items priced at £240 less trade discount of 20%. A cash discount of
2)5% is allowed if payment is made within 30 days. Which figure will be entered as a purchase in the books?

Accepted Answer

A)  £2,340 
B)  £2,400 
C)  £1,920 
D)  £1,872 
A)  £2,340 
B)  £2,400 
C)  £1,920 
D)  £1,872

Question 7

Which of the following is not a name for the ledger?

Accepted Answer

A)  Nominal 
B)  General 
C)  Book of prime entry 
D)  None of the above, its called the ledger 
A)  Nominal 
B)  General 
C)  Book of prime entry 
D)  None of the above, its called the ledger

Question 8

A sales invoice shows 20 items priced at £200 less trade discount of 10%. A cash discount of 5% is allowed if payment is received within 30 days. Which figure will be entered as a sale in the books?

Accepted Answer

A)  £3,800 
B)  £3,600 
C)  £3,420 
D)  £3,400 
A)  £3,800 
B)  £3,600 
C)  £3,420 
D)  £3,400

Question 9

Which of the following source documents is sent when the seller undercharges the buyer for goods sold to them?

Accepted Answer

A)  Second Invoice 
B)  Debit note 
C)  Credit note 
D)  Statement 
A)  Second Invoice 
B)  Debit note 
C)  Credit note 
D)  Statement

Question 10

A sales invoice shows 20 items priced at £200 less trade discount of 10%. A cash discount of 5% is allowed if payment is received within 30 days. Which figure will be entered as a sale in the books?

Accepted Answer

A)  £4,000 
B)  £3,800 
C)  £3,600 
D)  £3,060 
A)  £4,000 
B)  £3,800 
C)  £3,600 
D)  £3,060

Question 11

Which of the following is not typically included as a journal?

Accepted Answer

A)  A material sale 
B)  Period end adjustments 
C)  An unusual transaction 
D)  The correction of errors 
A)  A material sale 
B)  Period end adjustments 
C)  An unusual transaction 
D)  The correction of errors

Question 12

Which one of the following is not a book of original entry?

Accepted Answer

A)  The cash book 
B)  The journal 
C)  The ledger 
D)  The sales day book 
A)  The cash book 
B)  The journal 
C)  The ledger 
D)  The sales day book

Question 13

Which of the following is correct? In a book of prime entry:

Accepted Answer

A)  Ledger accounts are kept 
B)  Transactions relating to branch accounts are kept 
C)  Information is recorded and summarised before being entered to the ledger 
D)  Reconciliations are performed 
A)  Ledger accounts are kept 
B)  Transactions relating to branch accounts are kept 
C)  Information is recorded and summarised before being entered to the ledger 
D)  Reconciliations are performed

Question 14

A credit note issued to your business in respect of purchases should be entered into:

Accepted Answer

A)  Purchases account. 
B)  Returns inwards day book 
C)  Returns outward day book 
D)  Cash book 
A)  Purchases account. 
B)  Returns inwards day book 
C)  Returns outward day book 
D)  Cash book

Question 15

The bills payable book:

Accepted Answer

A)  Records cheques received and paid 
B)  Records cash received and paid 
C)  Records bills of exchange receivable 
D)  Records bills of exchange payable 
A)  Records cheques received and paid 
B)  Records cash received and paid 
C)  Records bills of exchange receivable 
D)  Records bills of exchange payable

Question 16

Which of the following is sourced by an entity that is purchasing goods?

Accepted Answer

A)  Invoice 
B)  Statement 
C)  Credit note 
D)  Cheque 
A)  Invoice 
B)  Statement 
C)  Credit note 
D)  Cheque

Exam 8: Basic Documentation and Books of Accounts

Which of the following is used by an entity to record details of a sale in the sales day book?

A purchase order:

Which of the following is not an example of source documentation?

A statement:

A purchase invoice shows 10 items priced at £240 less trade discount of 20%. A cash discount of 2)5% is allowed if payment is made within 30 days. How much will the entity have to pay assuming payment is made within the 30 days?

A purchase invoice shows 10 items priced at £240 less trade discount of 20%. A cash discount of 2)5% is allowed if payment is made within 30 days. Which figure will be entered as a purchase in the books?

Which of the following is not a name for the ledger?

A sales invoice shows 20 items priced at £200 less trade discount of 10%. A cash discount of 5% is allowed if payment is received within 30 days. Which figure will be entered as a sale in the books?

Which of the following source documents is sent when the seller undercharges the buyer for goods sold to them?

A sales invoice shows 20 items priced at £200 less trade discount of 10%. A cash discount of 5% is allowed if payment is received within 30 days. Which figure will be entered as a sale in the books?

Which of the following is not typically included as a journal?

Which one of the following is not a book of original entry?

Which of the following is correct? In a book of prime entry:

A credit note issued to your business in respect of purchases should be entered into:

The bills payable book:

Which of the following is sourced by an entity that is purchasing goods?

Entities and Financial Reporting Standards

International Accounting: Institutional Framework and Standards

The Nature and Objectives of Financial Accounting

Accounting Principles, Concepts and Policies

The Conceptual Framework of Accounting

Auditing, Corporate Governance and Ethics

The Accounting Equation and Its Components

The General Ledger

The Balancing of Accounts and the Trial Balance

Day Books and the Journal

The Cash Book

The Petty Cash Book

The Final Financial Statements of Sole Traders

Depreciation and Non-Current Assets

Bad Debts and Provisions for Bad Debts

Accruals and Prepayments

The Preparation of Final Financial Statements From the Trial Balance

The Bank Reconciliation Statement

Control Accounts

Errors and Suspense Accounts

Single Entry and Incomplete Records

Inventory Valuation

Financial Statements for Manufacturing Entities

The Final Financial Statements of Clubs

The Final Financial Statements of Partnerships

Changes in Partnerships

Partnership Dissolution and Conversion to Company Status

The Nature of Limited Companies and Their Capital

The Final Financial Statements of Limited Companies

Statement of Cash Flows

The Appraisal of Company Financial Statements Using Ratio Analysis

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