ITBK Revision

Question 1

Name 6 types of business documents used in Bookkeeping:

Answer 1

-Invoices
-Credit Note
-Remittance Advice
-Statement of Account
-Petty Cash Voucher
-Bank Statement

Question 2

Invoice: explain

Answer 2

Details goods/services received. It is a request for payment

Question 3

Credit Note: explain

Answer 3

Details items returned or not received and their value. Also issued when prompt payment discount has been claimed.

Question 4

Remittance Advice: Explain

Answer 4

Shows the amount paid and the transactions included in that amount

Question 5

Statement of Account: explain

Answer 5

Details all financial transactions on the account including money owed and the outstanding transactions

Question 6

Petty cash voucher: explain

Answer 6

Records small payments

Question 7

Bank statement: explain

Answer 7

Shows all money paid into and out of the bank account

Question 8

Advantages of Computerised Accounting Systems: (4)

Answer 8

-Speed and efficiency
-Time saving
-Automation, eg: document generation
-Reduces chance of human error

Question 9

Disadvantages of Computerised Accounting Systems( 4):

Answer 9

-vulnerable to cuber attack
-Cost
-Staff training on system
-Power and internet outages

Question 10

3 types of discounts in bookkeeping:

Answer 10

-Trade
-Bulk
-Prompt payment