AAT Basic Accounting 2 Assignment 1
Before attempting this assignment you should have read chapters 1 to 4 of your Osborne Book ”BASIC ACCOUNTING 2” and attempted the relevant chapter activities in your WORKBOOK.
The pass mark for the assignment is 70% - should you fail then please review the areas where you are weak. If you are still having problems then please do not hesitate to contact AATFree
Good Luck!
Questions and Answers
- 1.
A paper-based direct payment through the banking system with a three day clearance cycle is called a bank giro credit.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A paper-based direct payment through the banking system with a three day clearance cycle is called a bank giro credit. This means that when a payment is made using this method, it is processed through the banking system and takes three days to clear. The term "bank giro credit" specifically refers to this type of payment method, indicating that the statement is true.Rate this question:
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- 2.
What do the letters BACS stand for : ______________ _____________________ ___________________ _____________________
Correct Answer
bankers automated clearing servicesExplanation
The letters BACS stand for bankers automated clearing services. BACS is a system used in the United Kingdom for electronic funds transfer and direct debit payments. It allows for the efficient and secure transfer of funds between bank accounts, automating the clearing process. This system is widely used by individuals, businesses, and organizations for various financial transactions.Rate this question:
- 3.
A regular BACS payments, set up with the bank by the customer paying the amounts is called a _______ _________
Correct Answer
standing orderExplanation
A regular BACS payment, set up with the bank by the customer paying the amounts is called a standing order.Rate this question:
- 4.
A regular and variable BACS payments, set up by the organisation receiving the payments is called a _______ _______
Correct Answer
direct debitExplanation
A regular and variable BACS payment set up by the organization receiving the payments is called a direct debit. A direct debit allows the organization to collect payments directly from the customer's bank account, typically on a recurring basis. This method provides convenience for both the organization and the customer, as it eliminates the need for manual payments and ensures timely and accurate transactions.Rate this question:
- 5.
A high value, same day, payments sent through the banks’ computer systems is called a CHIPS payment
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
CHAPS paymentRate this question:
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- 6.
A cheque written out by a bank – as good as cash – used for high value purchases is called a Bank Draft
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A bank draft is a type of cheque issued by a bank, which is considered as good as cash. It is commonly used for high-value purchases, as it guarantees payment to the recipient. Therefore, the statement "A cheque written out by a bank – as good as cash – used for high-value purchases is called a Bank Draft" is true.Rate this question:
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- 7.
A cheque is returned to the business which has paid it in marked 'Refer to Drawer'. This means that the issuer of the cheque does not have sufficient funds in the account to cover the cheque.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The explanation for the given correct answer is that when a cheque is marked 'Refer to Drawer', it indicates that the issuer of the cheque does not have enough funds in their account to cover the payment. This means that the cheque cannot be processed and will be returned to the business that received it. Therefore, the statement is true.Rate this question:
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