Computerised Accounting Quiz: Test!

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| By Satpal Singh

Satpal Singh

Community Contributor

Quizzes Created: 3 | Total Attempts: 1,367

Questions: 10 | Attempts: 740 | Updated: Mar 22, 2023

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Have you ever heard of computerized accounting? Computerized accounting system is made up of diverse controls, activities, and methods for the summarization, classification, recording, and assembly of financial information to help with businesses, governments, and other institutions. They are often discovered on a company’s computer, network server, or remote access, such as the internet. This quiz will provide you with assistance for learning about computerized accounting.

Questions and Answers

1.

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 Account and Bank Account
Correct Answer
B. Cash Account and Sales Account

Explanation
You debit the cash account and credit the sales account.

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2.

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 Entry

Explanation
Double entry is the standard system used to record transactions in accounting. This system follows the principle that every transaction has two aspects - a debit and a credit. Each transaction is recorded in at least two accounts, with one account debited and another account credited. This ensures that the accounting equation (Assets = Liabilities + Equity) remains in balance. Double entry provides a more accurate and complete record of financial transactions, allowing for better analysis and reporting of a company's financial position and performance.

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3.

Which one of the following categories does the Rent account belong to?
- A.
  
  Assets
- B.
  
  Liabilities
- C.
  
  Expenses
- D.
  
  Purchases
Correct Answer
C. Expenses

Explanation
Rent is an overhead for the business, hence in the expenses category.

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4.

The accounts used to record double entries are called?
- A.
  
  Profit and Loss accounts
- B.
  
  Nominal accounts
- C.
  
  Sales ledgers
- D.
  
  Purchase ledgers
Correct Answer
B. Nominal accounts

Explanation
Nominal accounts are part of the main ledger where all the business transactions are recorded using a double-entry system.

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5.

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 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 HMRC

Explanation
VAT registered businesses are required by the law to account for all their sales and purchase transactions using VAT.

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6.

Select the correct Accounting Equation from the following options.
- A.
  
  Capital = Liabilities - Assets
- B.
  
  Assets - Liabilities = Capital
- C.
  
  Liabilities - Capital = Assets
- D.
  
  Assets + Liabilities - Capital
Correct Answer
B. Assets - Liabilities = Capital

Explanation
The accounting equation informs about the status of the business. The balance sheet report is prepared using this accounting principle.

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7.

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 expenditure

Explanation
VAT is paid by the end-user of the products and services.

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8.

You are preparing a sales invoice and the goods totals come 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. £87.50

Explanation
Working: 500 X 17.5 /100 = 87.50

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9.

Which tax code is used for entering wage transactions in the Sage?
- A.
  
  T8
- B.
  
  T4
- C.
  
  T9
- D.
  
  T5
Correct Answer
C. T9

Explanation
Payment for wages is out of the scope of VAT. Sage uses the T9 code for these transactions.

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10.

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. Invoice

Explanation
An invoice must be issued by the seller.

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Current Version
Mar 22, 2023

Quiz Edited by
ProProfs Editorial Team
Mar 07, 2011

Quiz Created by
Satpal Singh

Computerised Accounting Quiz: Test!

You make a cash sale for £200 (No VAT). Which of the following pairs of nominal accounts are affected?

Which one of the following is the standard system used to record transactions?

Which one of the following categories does the Rent account belong to?

The accounts used to record double entries are called?

If your business is VAT registered, which one of the following is correct?

Select the correct Accounting Equation from the following options.

What type of tax is VAT?

You are preparing a sales invoice and the goods totals come to £500.00, If the VAT rate is 17.5%, what is the VAT amount to be added to the invoice?

Which tax code is used for entering wage transactions in the Sage?

Which one of the following documents must be issued for credit sales?