Basic Accounting 1 Assignment 1

18 Questions | By Woodfrank | Last updated: Mar 21, 2022 | Total Attempts: 2178

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Before attempting this assignment you should have read chapters 1 to 3 of your Osborne Book ”BASIC ACCOUNTING 1 " and attempted the 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 cash sale is a sale where payment is made in notes and coins
- A.
  
  True
- B.
  
  False
2.

A credit sale is a sale where payment is made at a later date
- A.
  
  True
- B.
  
  False
3.

The place in the books of a business where a financial transaction is recorded for the first time is known as a book of prime entry
- A.
  
  True
- B.
  
  False
4.

The book of prime entry which lists payments in and out of the bank account is known as the Petty Cash Book
- A.
  
  True
- B.
  
  False
5.

‘Total ‘ accounts contained in the general ledger are known as Control Accounts
- A.
  
  True
- B.
  
  False
6.

A list of the balances of the ledger accounts drawn up in two columns ,debit and credit, is known as a
7.

E & OE stands for:
8.

Settlement discount is another name for cash discount.
- A.
  
  True
- B.
  
  False
9.

The Inland Revenue is responsible for the administration of VAT
- A.
  
  True
- B.
  
  False
10.

You have been given the gross value of the goods that Micro Teach & Co has purchased and have been asked to calculate the vat? Vat is 20% Gross: £798.56
11.

Something that you own is called a(n)
- A.
  
  Asset
- B.
  
  Liability
12.

Something that you owe is called a(n)
- A.
  
  Asset
- B.
  
  Liability
13.

If you earn more than you spend, you have a
- A.
  
  Profit
- B.
  
  Loss
14.

If you spend more than you earn, you have a
- A.
  
  Profit
- B.
  
  Loss