AAT Basic Accounting 1 Assignment 3
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!
- 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?
- Computer repair
- Purchase of a property
- 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?
- Cost of re-decorating offices
- Purchase of additional machinery
- 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'.
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