Deck 8: Basic Documentation and Books of Accounts

Question 1

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

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

Answer 1

The ledger

Question 2

A purchase order:

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

Answer 2

Is sent to a supplier when goods are ordered

Question 3

A statement:

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

Answer 3

Is usually sent to a customer at the end of the month to show them the amount owing.

Question 4

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

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

Question 5

The bills payable book:

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 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?

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

Question 7

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

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?

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

Question 9

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?

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

Question 10

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

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

Question 11

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

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

Question 12

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

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 13

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

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

Question 14

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

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

Question 15

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

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

Question 16

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

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