Essential Book Keeping - Qp9

8 Questions | Total Attempts: 32

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Essential Book Keeping - Qp9

Questions and Answers
  • 1. 
    In calculating the amount of VAT due to HM Revenue and Customs, businesses total up the VAT charged on sales, and deduct the VAT paid for business supplies and other eligible costs.
    • A. 

      True

    • B. 

      False

  • 2. 
    On a ______ basis, VAT registered businesses must complete a VAT 100 form.
    • A. 

      Monthly

    • B. 

      Quarterly

    • C. 

      Half yearly

    • D. 

      Yearly

  • 3. 
    If the correct document isn’t to hand then the inspectors will allow that part of the claim and still make their own calculation of the amount required.
    • A. 

      True

    • B. 

      False

  • 4. 
    Each business will be inspected periodically to audit the returns which are made yearly.
    • A. 

      True

    • B. 

      False

  • 5. 
    HMRC inspectors seek to ensure that: (Select three)
    • A. 

      Correct VAT rates are being charged on invoices

    • B. 

      Correct records are being kept

    • C. 

      The amount paid is supported by the correct documentation

    • D. 

      The amount claimed is also supported by correct documents

    • E. 

      The method of accounting for debtors and creditors is correct

  • 6. 
    Every transaction for which VAT is being charged must be supported by an invoice or receipt.
    • A. 

      True

    • B. 

      False

  • 7. 
    You will need to keep a record of all zero-rated goods and services you receive or supply as part of your business.
    • A. 

      True

    • B. 

      False

  • 8. 
    Business records includes:  (Select five)
    • A. 

      Monthly accounts, including profit and loss accounts;

    • B. 

      Bank statements and paying-out slips;

    • C. 

      Cash books and other account books;

    • D. 

      Credit or debit notes you issue or receive;

    • E. 

      Import and export documents;

    • F. 

      Orders and delivery notes;

    • G. 

      Records of daily takings such as till rolls;

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