Deck 20: Maintain Financial Records

Question 1

To ensure that all entries are accurate, it is important to:

A) check all information provided is correctly entered
B) reconcile the accounts payable and receivable with the general ledger
C) audit the financial records at the end of every day
D) have a second person check everything you do each day

Answer 1

B

Question 2

Whenever a payment is made it must be:

A) updated in the general ledger
B) deducted from the debits records
C) entered into the correct account in the correct manner
D) added to the expenses records

Answer 2

C

Question 3

The operating cycle of an organisation is the:

A) process of recording financial data
B) procedures used to control finances
C) system through which its cash flows
D) system that the staff work under

Answer 3

C

Question 4

When an account customer makes a purchase they will:

A) require a full written invoice of everything purchased by the company
B) need to sign a contract of sale
C) want you to provide them with the goods within 48 hours
D) either take the goods with them immediately or have them delivered

Question 5

An invoice is normally supplied along with the delivered goods outlining:

A) any discounts applicable and the due date for payment
B) the condition the goods are in
C) what the customer needs to do with the goods
D) any specific costs that are required

Question 6

Keeping financial records accurately is a complex issue that can only be completed with specific skills and knowledge to ensure work is completed expertly; this work can only be done by a qualified person.

Question 7

The bookkeeping process does not ensure that an organisation always knows exactly how much money it has to determine their financial position.

Question 8

Errors are only found in financial documentation such as purchase credit notes, purchase invoices, sales credit notes and sales invoices.

Question 9

Money being paid to you is classified as 'income', while money you must pay someone else is classified as an 'expense'.

Question 10

Accounting is concerned with balancing the organisation's financial accounts.