AAT Basic Accounting 1 Assignment 2

17 Questions | Total Attempts: 167

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AAT Quizzes & Trivia

Before attempting this assignment you should have read chapters 1 to 7 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. 
    When using double-entry accounting you must ignore the way banks refer to debits and credits.
    • A. 

      True

    • B. 

      False

  • 2. 
    The DEBIT entry is always recorded on the _____ hand side.
    • A. 

      Left

    • B. 

      Right

    • C. 

      Middle

  • 3. 
    Double-entry involves _________ entries.
  • 4. 
    A double-entry account has two sides a debit side and a ________ side.
  • 5. 
    The debit side is on the right of the double entry account.
    • A. 

      True

    • B. 

      False

  • 6. 
    The account is always headed up with its name.
    • A. 

      True

    • B. 

      False

  • 7. 
    A document issued by a supplier listing all the payments, invoices and credit notes on the account, providing a total of the amount due is called a _______________________________________________
    • A. 

      Statement or account

    • B. 

      Sales invoice

    • C. 

      Remittance advice

    • D. 

      Sales control account

  • 8. 
    A remittance  advice is used to accompany a cheque when paying a supplier.
    • A. 

      True

    • B. 

      False

  • 9. 
    Expenditure on assets such as buying a building or a new van is called revenue expenditure.
    • A. 

      True

    • B. 

      False

  • 10. 
    Enter debit or credit? The correct general ledger entries for a purchase transaction are debit the purchases account, credit the purchase ledger control account and _____________ the VAT account.
  • 11. 
    A subsidiary ledger such as the purchase ledger (but not part of the double entry system) is sometimes called _________________ account.
  • 12. 
    Enter debit or credit? The correct general ledger entries for a purchase returns transaction are _____________ the purchases returns account, debit the purchase ledger control account and credit the VAT account.
  • 13. 
    An analysed purchase day book is used when businesses only purchase one category of stock.
    • A. 

      True

    • B. 

      False

  • 14. 
    Tick the correct answer. Examples of books of prime entry are
    • A. 

      Purchases account,purchases returns account,VAT account

    • B. 

      Purchase invoices, credit notes

    • C. 

      Purchases day book, purchases returns day book

  • 15. 
    An Accounts Payable could result from which of the following transactions?
    • A. 

      Purchasing supplies for cash.

    • B. 

      Purchasing property, plant and equipment for cash.

    • C. 

      Purchasing goods and services from suppliers on credit.

    • D. 

      All of the above.