Biss Docs

Question 1

What are the three different types of business entities?

Answer 1

Sole trader, limited company, partnership

Question 2

What are financial statements based on?

Answer 2

The businesses financial recors

Question 3

What is financial statement?

Answer 3

Measure performance and year end position

Question 4

How do you make sure financial records are accurate?

Answer 4

All trans are supported by business documents

Question 5

What is a financial document?

Answer 5

Is a document that is recorded in a book of prime entry

Question 6

What other words are used to describe sales income?

Answer 6

Revenue and sales revenue

Question 7

An invoice being issued is a cash or credit sale?

Answer 7

Credit

Question 8

What are the six stages of business documentation?

Answer 8

Quotation, customer order, delivery note, invoice, credit note, remittance advice

Question 9

What happens if documents aren’t complete accurate and invalid?

Answer 9

They can delay the sale of goods or the provision of service
Hinder payment for goods and service
Lead to errors in the accounting record

Question 10

What errors can occur in documentation?

Answer 10

Name of the customer supplier, or services provided, product codes, price per unit, quantities, discounts and VAT

Question 11

How can you check documentation in your exam?

Answer 11

Check the details on the sales order I’m actually the delivery note which match the invoice

Question 12

What is a customer order?

Answer 12

Is a request by a customer to purchase a specific quantity of goods from an individual or organisation?

Question 13

What is a delivery note?

Answer 13

A note that accompanies the shipment of goods

Question 14

When does an invoice get provided?

Answer 14

When the good service service has been supplied and therefore the delivery note has been sent to the customers the accounts will raise an invoice

Question 15

How do you work out VAT?

Answer 15

You divide the net by 100 then times by 20

Question 16

When do you issue a credit note?

Answer 16

When an invoice has already been issued, raising a credit note or reduce the amount owed by the customer

Question 17

What is the credit note similar to?

Answer 17

An invoice

Question 18

Should’ve credit note contain the reason for the credit note

Answer 18

Yes

Question 19

What do you need to remember when preparing an credit note?

Answer 19

Whether a discount was applied and needs to be included on the credit note

Question 20

What must be done before petty cash is given out

Answer 20

Petty cash voucher which is an internal document must be completed and authorised before, receipts then attached to the voucher

Question 21

Why did invoices have a customer code?

Answer 21

To denote the particular customer

Question 22

What code invoices and credit notes routinely include?

Answer 22

Project codes for the item sold

Question 23

What can’t you see from business documents alone?

Answer 23

The amount of income the business is generated
The expenditure incurred
How much cash has been received received and paid?
What customers still owe money to the business?
What supplies are awaiting payment from the business?

Question 24

What is the book of prime entry?

Answer 24

This is entering details from key business documents into the appropriate book of prime entry

Question 25

What is the book of prime entry also known as?

Answer 25

Daybooks

Question 26

What happens with the prime book on a regular basis at EG weekly monthly quarterly?

Answer 26

The books are primary are total and the total is entered onto the general ledger

Question 27

What are the general steps for financial documents

Answer 27

Input the transactions into the book of prime entry, process the transactions through the ledger, generate output e.g. trial balance financial statements