Introduction to Bookkeeping (ITBK) Flashcards
Which ledger contains the accounts of credit customers?
Sales/Receivables Ledger
From which ledger is the trial balance extended?
General Ledger
Which book of prime entry records small cash transactions?
Petty Cash Book
Which ledger contains the account of credits suppliers?
Purchase/Payables ledger
Which book of prime entry records bank payments and receipts?
Cash Book
A debtor is otherwise known as:
A trade receivable
A creditor is also known as:
A trade payable
Which of the following is part of the general ledger?
A) Sales/receivables ledger control account
B) Petty Cash Book
C) Cash Book
Sales/Receivables Ledger control account
1a) when processing invoices for credit customers - where would these initially be recorded?
purchase day book; sales day book; purchase/payables ledger; sales/receivables ledger
1b) where is the information this book of prime entry posted to?
sales/receivables ledger; sales day book; purchase day book; purchase/payables ledger
b) sales day book
a) sales/receivables ledger
2a) when goods are returned to a credit supplier, what document should be received from the supplier?
invoice; statement; remittance advice; credit note
2b) upon receipt of this document, where would it initially be recorded?
sales day book; purchase day book; purchase returns day book; sales returns day book
credit note
purchase returns day book
3a) a business has a locked tin that holds a small amount of cash which can be accessed to purchase sundry items as and when required. What is the name of the document used to record the purchases?
remittance advice; petty cash voucher; credit note; invoice
3b) where would this document be recorded?
cash book; general ledger; petty cash book; purchase day book
Petty Cash Voucher
Petty Cash Book
4) which of the following is NOT a book of prime entry?
sales day book; general ledger; discount allowed day book; cash book
General Ledger
5) Which document is issued to customers at the end of each month to show them their outstanding balance?
Remittance advice; credit note; statement; invoice
Statement
6) Which financial statement details the assets, liabilities and capital of a business?
Statement of profit and loss; statement of financial affairs; statement of financial position
Statement of Financial Position
7) Which of the following is used to generate the initial Trial Balance?
Purchase/Payables Ledger; General Ledger; Sales Day Book; Sales/Receivables Ledger
General Ledger
8a) When a prompt payment discount is offered to credit customers in the general ledger, this is known as:
Discount received; trade discount; discount allowed; cash discount
8b) Which book of prime entry would be used to record this discount?
sales returns day book; discount allowed day book; discount received day book; sales day book
Discount Allowed
Discount Allowed Day Book
9a) When a business takes advantage of prompt payment discount from a credit supplier, this is known as:
Discount received; trade discount; discount allowed; cash discount
9b) Which book of prime entry would be used to record this discount?
Sales Returns Day Book; Discount Allowed Day Book; Discount Received Day Book; Sales Day Book
Discount Received
Discount Received Day Book
10) Which one of the following is NOT a subsidiary ledger?
General Ledger; Sales/Receivables Ledger; Purchase/Payables Ledger
General Ledger
11) Which document would be used to check the Bank account when transactions are missing?
Statement; Remittance Advice; Bank Statement; Petty Cash Voucher
Bank Statement
12) Who are trade receivables?
credit suppliers; credit customers
Credit customers
13) Who are trade payables?
credit suppliers; credit customers
Credit Suppliers
What’s the correct order of the five stages of the Bookkeeping process?
Ledger accounts; financial documents; books of prime entry; financial transaction; trial balance
Financial Transaction
Financial Documents
Books of Prime Entry
Ledger Accounts
Trial Balance
