AAT Basic Accounting 1 Assignment 3

14 Questions | Total Attempts: 296

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Before attempting this assignment you should have read chapters 1 to 11 of your Osborne Book ”BASIC ACCOUNTING 1” 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 three-column cash book has three columns, one for bank, one for VAT and one for _______________________
  • 2. 
    A cash purchase is where a business buys goods from a supplier and pays in full immediately
    • A. 

      True

    • B. 

      False

  • 3. 
    Petty cash receipts are recorded on the credit side.
    • A. 

      True

    • B. 

      False

  • 4. 
    Transactions recorded in the Petty Cash Book include:
    • A. 

      Postage

    • B. 

      Stock or inventory

    • C. 

      Window Cleaning

    • D. 

      Window repairs

    • E. 

      Taxi fares

  • 5. 
    A trade receivable is an example of:
    • A. 

      Asset

    • B. 

      Liability

    • C. 

      Income

  • 6. 
    Which of the following items are items of capital expenditure?
    1. Computer repair
    2. Purchase of a property
    3. Short-term hire of machinery
    • A. 

      1 and 2

    • B. 

      1 and 3

    • C. 

      2 only

    • D. 

      3 only

  • 7. 
    Which of the following items are items of capital expenditure?
    1. Cost of re-decorating offices
    2. Purchase of additional machinery
    3. Construction of an extension to the Head Office building
    • A. 

      1 and 2

    • B. 

      1 and 3

    • C. 

      2 and 3

    • D. 

      3 only

  • 8. 
    The accounting equation is: Assets = Liabilities + Contributed Capital
    • A. 

      True

    • B. 

      False

  • 9. 
    The accounting equation is Assets = Liabilities - Owners Equity.
    • A. 

      True

    • B. 

      False

  • 10. 
    Which of the following statements is incorrect:
    • A. 

      Assets - Capital = Liabilities

    • B. 

      Liabilities + Capital = Assets

    • C. 

      Liabilities + Assets = Capital

    • D. 

      Assets - Liabilities = Capital

  • 11. 
    Which of the following is not an asset
    • A. 

      Office Furniture

    • B. 

      Cash at Bank

    • C. 

      Accounts receivable

    • D. 

      Loan from V Porter

  • 12. 
    Which of the following should not be called sales:
    • A. 

      Office fixtures sold

    • B. 

      Goods sold on credit

    • C. 

      Goods sold for cash

    • D. 

      Sale of item previously included in 'Purchases'.