Chapter 3: Recording Financial Transactions

Question 1

Which source documents would be entered into the accounting system?

Answer 1

1. A credit note
2. Sales invoice to a customer
3. Cheque to a supplier
4. Purchase invoice from a supplier

Question 2

What is the imprest system of petty cash?

Answer 2

1. The exact amount of petty cash expenditure is reimbursed at intervals to maintain a fixed float
2. The amount of money in petty cash is kept at an agreed sum

Question 3

When a purchase invoice is received from a supplier, which documents would the invoice be checked to?

Answer 3

Purchase order and goods received note

Question 4

Is a sales order a source document for recording financial transactions?

Answer 4

No

Question 5

Is a delivery note a source document for recording financial transactions?

Answer 5

No

Question 6

Is a sales invoice a source document for recording financial transactions?

Answer 6

Yes

Question 7

Is a purchase order a source document for recording financial transactions?

Answer 7

No

Question 8

Is a goods received note a source document for recording financial transactions?

Answer 8

No

Question 9

Is a supplier invoice a source document for recording financial transactions?

Answer 9

Yes

Question 10

Is a debit note a source document for recording financial transactions?

Answer 10

No

Question 11

Is a credit note a source document for recording financial transactions?

Answer 11

Yes

Question 12

Define: Petty cash book

Answer 12

The book or spreadsheet in which payments and receipts of petty cash are recorded. The petty cash book is the source document for petty cash.

Question 13

Is a petty cash book a source document for recording financial transactions?

Answer 13

Yes

Question 14

Define: payroll

Answer 14

The record of wages and salaries costs

Question 15

Is payroll a source document for recording financial transactions?

Answer 15

Yes