Chapter 4: Cash Transactions

Question 1

Goods and Service Tax

Answer 1

a 10% tax levied by the federal government on most purchases of goods (excluding fresh food) and services

Question 2

Tax Invoice

Answer 2

a source document that contains specific information required by the ATO to substantiate GST amounts

Question 3

GST Clearing

Answer 3

a ledger account that records all GST transactions

Question 4

GST settlement

Answer 4

a cash payment to the ATO to settle a GST liability from a previous period

Question 5

GST Refund

Answer 5

a cash receipt from the ATO to settle a GST asset from a previous period

Question 6

General Journal

Answer 6

an Accounting record used to analyse and record each transaction, and to identify its source document before posting to the General Ledger

Question 7

Narration

Answer 7

a brief description of a transaction recorded in the General Journal, including a reference to the relevant source document

Question 8

Cash Receipt

Answer 8

a source document used to verify cash received

Question 9

Bank Statement

Answer 9

a report generated by a bank listing all cash deposits into and withdrawals from a particular account

Question 10

EFT Receipt

Answer 10

a source document used to verify a cash transfer received via Electronic Funds Transfer

Question 11

Credit Card Receipt

Answer 11

a source document issued for sales made on credit card

Question 12

Cheque butt

Answer 12

a source document used to verify a cash payment made by cheque