Lesson 1 Quiz Flashcards
The double entry bookkeeping system is used by most sole trader and partnership organisations for the purpose of recording financial transactions
False
What sources of data are used for the purpose of keeping financial records?
(8)
Sales invoices and credit notes issued by to credit-based companies
Sales invoices and credit notes received from credit-based suppliers (purchase invoices)
Receipts collected to support cash-based customers, or till roll readings showing a summary of cash sales
Receipts collected to support cash-based purchases
Bills received from utility companies
Vouchers - such as petty cash vouchers
Statement of account - particularly bank statements
Chequebook stubs
What are the main types of business entity that operate within the private sector of the U.K. economy?
Sole Traders
Partnerships
Limited companies (private and public)
What are the time period for which it is a legal requirement that a business document and other supporting records used as the basis of recording business transactions must be kept?
6 years
Sales invoices, credit notes issued and received and petty cash vouchers are kept in
Numerical order
Payroll records or personal files. Custom and supplier file are kept in…
Alphabetical order
Till roll readings, statement of account issued to customers or received from suppliers and bank statements are kept in…
Chronological (date) order
When dealing with customers or suppliers situated in various countries.
File invoices, credit notes and statement of account issued and received are kept in…
Geographically order
Sole traders have _ liability
Unlimited liability
In partnership business organisations to share the profits and/or losses what should be drawn up
Deed of Partnership / Partnership Agreement
Purpose of management accounting
Not a legal requirement
Is to provide financial information at a time, and in a format, that make it suitable for the purpose of planning and controlling the business
