Introduction to Bookkeeping (ITBK)

Question 1

Which ledger contains the accounts of credit customers?

Answer 1

Sales/Receivables Ledger

Question 2

From which ledger is the trial balance extended?

Answer 2

General Ledger

Question 3

Which book of prime entry records small cash transactions?

Answer 3

Petty Cash Book

Question 4

Which ledger contains the account of credits suppliers?

Answer 4

Purchase/Payables ledger

Question 5

Which book of prime entry records bank payments and receipts?

Answer 5

Cash Book

Question 6

A debtor is otherwise known as:

Answer 6

A trade receivable

Question 7

A creditor is also known as:

Answer 7

A trade payable

Question 8

Which of the following is part of the general ledger?
A) Sales/receivables ledger control account
B) Petty Cash Book
C) Cash Book

Answer 8

Sales/Receivables Ledger control account

Question 9

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

Answer 9

b) sales day book

a) sales/receivables ledger

Question 10

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

Answer 10

credit note

purchase returns day book

Question 11

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

Answer 11

Petty Cash Voucher

Petty Cash Book

Question 12

4) which of the following is NOT a book of prime entry?
sales day book; general ledger; discount allowed day book; cash book

Answer 12

General Ledger

Question 13

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

Answer 13

Statement

Question 14

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

Answer 14

Statement of Financial Position

Question 15

7) Which of the following is used to generate the initial Trial Balance?
Purchase/Payables Ledger; General Ledger; Sales Day Book; Sales/Receivables Ledger

Answer 15

General Ledger

Question 16

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

Answer 16

Discount Allowed

Discount Allowed Day Book

Question 17

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

Answer 17

Discount Received

Discount Received Day Book

Question 18

10) Which one of the following is NOT a subsidiary ledger?
General Ledger; Sales/Receivables Ledger; Purchase/Payables Ledger

Answer 18

General Ledger

Question 19

11) Which document would be used to check the Bank account when transactions are missing?
Statement; Remittance Advice; Bank Statement; Petty Cash Voucher

Answer 19

Bank Statement

Question 20

12) Who are trade receivables?
credit suppliers; credit customers

Answer 20

Credit customers

Question 21

13) Who are trade payables?
credit suppliers; credit customers

Answer 21

Credit Suppliers

Question 22

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

Answer 22

Financial Transaction
Financial Documents
Books of Prime Entry
Ledger Accounts
Trial Balance