Accounting?

Question 1

What is a debit order?

Answer 1

Permission to another person/business to take money automatically from your bank account

Question 2

What is the benefit of using a cash register instead of receipts?

Answer 2

They work quicker and more accurately

Question 3

Which type of transactions is cash invoices used?

Answer 3

Cash sales

Question 4

Cheque

Answer 4

Written order, giving the bank order to pay a specified amount of money from the drawers account into the beneficiaries account or in cash

Question 5

Cheque counterfoil

Answer 5

Part of the bank cheque kept by the issuer and on which a record of the transaction is made

Question 6

EFT voucher

Answer 6

Electronic document
Internet banking
Printed and used as a source document

Question 7

Cash invoice

Answer 7

Specified amount cash between buyer and seller

Include quantity, description and price of goods or services

Question 8

Bank statement

Answer 8

Received from bank where business keeps current account

Includes 
Opening balance- amount on first day 
Deposits ( credit side) 
Payments ( debit side) 
Closing balance- amount on last day

Question 9

CRR

Answer 9

Speeds up sales
Summary of all sale transactions
Record total sales

Question 10

Duplicate receipt

Answer 10

Issued by hand or electronically

Money received- original given client and duplicate kept by accountant to record transaction in CRJ

Question 11

What is a source document

Answer 11

Document issued or received by entity proving transaction taken place
Contains info related to nature of transaction that has taken place and is used to anger transaction in books of first entry (journals)

Question 12

What should be indicated in all source documents

Answer 12

Date 
Document number 
Signature person received/ issued 
Amount 
Description 
Name person isssued/received

Question 13

Equity (8)

Answer 13

Drawings and capital
Owner takes from business and owner contributes money: assets

Expenses and income
Decreases equity and increases equity

Question 14

Assets (8)

Answer 14

Non current:
Monetary value longer 12 months used generate profit 
Example: land and buildings 
                 Vehicles 
                 Equipment 

Current: 
Cash or cash equivalent can be changed into cash within 12 months 
Example
Trading stock 
Debtors 
Bank
Petty cash 
Cash float

Question 15

Liabilities (8)

Answer 15

Non current
Debt of business more than 12 months
Example
Mortgage loan

Current 
Debt of business owed less 12 months 
Example 
Creditors 
Bank overdraft

Question 16

General ledger

Answer 16

Accounts containing summary of the info in journals

Question 17

Balance sheet

Answer 17

Financial position of business on year end

Question 18

Income statement

Answer 18

Indicates profit or loss

Question 19

Source document

Answer 19

Used by accountant to record transaction

Question 20

Transaction

Answer 20

Agreement with monetary value between two parties

Question 21

Transferring

Answer 21

Transferring from journal to ledger

Question 22

Journal

Answer 22

First entry to record transactions

Question 23

Trial balance

Answer 23

Accounts in the General ledger with their balances

Question 24

Debtor

Answer 24

Owes business money

Question 25

Petty cash

Answer 25

Cash on hand used when small amounts are due

Question 26

Cash float

Answer 26

Cash in Till

Question 27

Land and buildings

Answer 27

Long term assets which shows purchase price or cost of land and buildings

Question 28

Creditors

Answer 28

Business bought goods on credit from creditors m. Individual or business who owes the business money

Question 29

Bank overdraft

Answer 29

Loan arrangement under which back extends credit up to a maximum amount Overdraft limit

Question 30

Equity

Answer 30

Investment of the owner in business

Question 31

Current income

Answer 31

Delivering services money received

Question 32

Commission income

Answer 32

Selling something on behalf of somebody

Question 33

Interest on current account

Answer 33

Money received on the favorable balance of the back account

Question 34

Consumables

Answer 34

Goods used delivering services | Shampoo

Question 35

Interest on overdraft

Answer 35

Interest charged by the bank on oberdraft | When business owes the back money

Question 36

Fees

Answer 36

Charges business registrations and renewals as well as the professional services of accountants etc.

Question 37

Sundry expense

Answer 37

Infrequent costs not assigned to individual ledger accounts but are classified as a group