AAT Basic Accounting 1 Assignment 2
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!
- 1.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
- 2.A remittance advice is used to accompany a cheque when paying a supplier.
- A.
True
- B.
False
- 3.Expenditure on assets such as buying a building or a new van is called revenue expenditure.
- A.
True
- B.
False
- 4.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.
- 5.A subsidiary ledger such as the purchase ledger (but not part of the double entry system) is sometimes called _________________ account.
- 6.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.
- 7.An analysed purchase day book is used when businesses only purchase one category of stock.
- A.
True
- B.
False
- 8.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
- 9.When using double-entry accounting you must ignore the way banks refer to debits and credits.
- A.
True
- B.
False
- 10.The DEBIT entry is always recorded on the _____ hand side.
- A.
Left
- B.
Right
- C.
Middle
- 11.Double-entry involves _________ entries.
- 12.A double-entry account has two sides a debit side and a ________ side.
- 13.The debit side is on the right of the double entry account.
- A.
True
- B.
False
- 14.The account is always headed up with its name.
- A.
True
- B.
False
- 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.
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