C&g Computerised Accounts - Level 2
You have completed the computerised accounts level 2 course. This is your end of the course review.
- 1.
You are preparing a sales invoice and goods totals comes to £500.00, If the VAT rate is 17.5%, what is the VAT amount to be added to the invoice?
- A.
£87.50
- B.
£90.60
- C.
£82.60
- D.
£117.50
Correct Answer
A. £87.50Explanation
Working: 500 X 17.5/100 = 87.50Rate this question:
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- 2.
Which one of the following documents must be issued for credit sales?
- A.
Delivery Note
- B.
Invoice
- C.
Sales Order
- D.
Cash Receipt
Correct Answer
B. InvoiceExplanation
An invoice must be issued by the sellerRate this question:
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- 3.
If your business is VAT registered, which one of the following is correct?
- A.
You do not have to account for VAT to the HMRC
- B.
You have to send a VAT return for your Sales and Purchases to HMRC
- C.
You do not have pay VAT on your purchases
- D.
You do not receive VAT from your customers
Correct Answer
B. You have to send a VAT return for your Sales and Purchases to HMRCExplanation
VAT registered businesses are required by the law to account for their Sales and Purchases transactions using VAT.Rate this question:
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- 4.
Select the correct Accounting Equation from the following options.
- A.
Capital = Liabilities - Assets
- B.
Assets - Liabilities = Capital
- C.
Liabilites - Capital = Assets
- D.
Assets + Liabilities = Capital
Correct Answer
B. Assets - Liabilities = CapitalExplanation
Accounting equation informs about the status of the business. The Balance Sheet reprot is prepared using this accounting principles.Rate this question:
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- 5.
Which tax code is used for entering wages transactions in the Sage?
- A.
T8
- B.
T4
- C.
T9
- D.
T5
Correct Answer
C. T9Explanation
Payment for wages is out of the scope of VAT. Sage Line 50 uses T9 for these transactionsRate this question:
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- 6.
What type of tax is VAT?
- A.
It is also known as Value And Taxation for business
- B.
VAT is a tax on the business income
- C.
VAT is a tax on consumer expenditure
- D.
VAT is a tax on wages paid by the businesses
Correct Answer
C. VAT is a tax on consumer expenditureExplanation
VAT is paid by the end user of the products and services.Rate this question:
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- 7.
You make a cash sale for £200 (No VAT). Which of the following pairs of nominal accounts are affected?
- A.
Rent Account and Bank Account
- B.
Cash Account and Sales Account
- C.
Sales Account and Trade Debtors Account
- D.
Purchases Accounts and Bank Account
Correct Answer
B. Cash Account and Sales AccountExplanation
You debit the cash account and Credit the Sales accountRate this question:
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- 8.
The accounts used to record double entries are called ?
- A.
Profit and Loss accounts
- B.
Nominal Accounts
- C.
Sales Ledger
- D.
Purchases Ledger
Correct Answer
B. Nominal AccountsExplanation
Nominal accounts are part of the main ledger where all business transactions are recorded using double entry system.Rate this question:
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- 9.
Which one of the following is the standard system used to record transactions?
- A.
The Accounting equation
- B.
Single entry
- C.
Double entry
- D.
Chart of Accounts
Correct Answer
C. Double entryExplanation
A double-entry bookkeeping system is a set of rules for recording financial information in a financial accounting system in which every transaction or event changes at least two different nominal ledger accounts.Rate this question:
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- 10.
Which tax code is normally used for entering reduced rate transactions in the Sage software?
- A.
T8
- B.
T4
- C.
T9
- D.
T5
Correct Answer
D. T5Explanation
Transactions for domestic fuel such as Gas and eletricity use 5% VAT rate. Code T5 is normally setup for these transactions in Sage.Rate this question:
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