Business Transactions & Bookkeeping

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Questions and Answers

Which of the following is NOT typically considered a primary business transaction type?

Purchases
Sales
Payroll
Employee appraisals (correct)

Trade discounts received are recorded as income in the statement of profit or loss.

False (B)

What is the primary purpose of a remittance advice?

A remittance advice informs a supplier which specific invoices والمبالغ a payment relates to, aiding the supplier in allocating the received funds correctly to the customer's account.

Why is a coding system important within a double-entry bookkeeping system?

A coding system provides a structured way to classify transactions, ensuring consistency, facilitating analysis (e.g., by expense type), aiding data entry, and enabling easier retrieval of information. Signup and view all the answers

The fundamental accounting equation states that Assets = Liabilities + _____.

Equity Signup and view all the answers

Which book of prime entry is used to initially record credit sales?

Sales day book (C) Signup and view all the answers

What type of errors typically requires the use of the journal for correction?

Errors of principle, errors of omission, errors of commission, compensating errors, errors of original entry, and reversal of entries require correction via the journal as they often affect two accounts and may not cause the trial balance totals to disagree. Signup and view all the answers

The imprest system for petty cash involves reimbursing the exact amount spent to restore the float to its original predetermined level.

True (A) Signup and view all the answers

What is the main purpose of preparing an aged receivables analysis?

An aged receivables analysis categorizes outstanding customer debts based on how long they have been overdue. Its main purpose is to help manage credit control by identifying slow-paying customers and potential irrecoverable debts. Signup and view all the answers

A _ _ is a summary of all the debit and credit balances extracted from the ledger accounts at a specific date.

trial balance Signup and view all the answers

Which of the following errors would NOT be revealed by extracting a trial balance?

Entering a transaction amount incorrectly in both the debit and credit accounts. (C) Signup and view all the answers

What is the purpose of reconciling a supplier statement with the payables ledger account?

Reconciling a supplier statement with the payables ledger account helps identify discrepancies such as unrecorded invoices or payments, errors in either party's records, or timing differences (e.g., payments in transit), ensuring the amount owed to the supplier is accurately stated. Signup and view all the answers

Flashcards

What does the "K" superscript mean?

Knowledge is denoted by a superscript K. It is used to assess knowledge within an accounting or business context.

What does the "S" superscript mean?

Skills are denoted by a superscript S. It is used to assess their application within an accounting or business context.