Revision Bitesize Books Of Prime Entry
QuestionsWhat is the definition of the following terms:1) Books Of Prime Entry Answer 2) Personal Allowances Answer 3) Discounts Received Answer 4) Clearing Answer 5) Standard Rate (of Vat) Answer 6) Input Tax Answer 7) Float Answer 8) Value Added Tax (vat) Answer 9) Charge Card Answer 10) Deposit Account Answer 11) Standing Order Answer 12) Real Accounts Answer 13) Contra Answer 14) Returns Outwards Day Book Answer 15) Current Account Answer 16) Overdraft Answer 17) Inputs Answer 18) Bank Loan Answer 19) Budget Answer 20) Impersonal Accounts Answer 21) Cheque Book Answer 22) Sensitivity Analysis Answer 23) Statement Answer 24) Forecasting Answer 25) Narrative Answer 26) Exempted Businesses Answer 27) Journal Answer 28) Output Tax Answer 29) General Ledger Answer 30) Financial Modelling Answer 31) Nominal Ledger Answer 32) Chart Of Accounts Answer 33) Tax Code Answer 34) Folio Columns Answer 35) Standard-rated Business Answer 36) Zero-rated Business Answer 37) Unregistered Business Answer 38) Personal Accounts Answer 39) Outputs Answer 40) Cash Book Answer 41) Private Ledger Answer 42) Registered Business Answer 43) Columnar Sales Day Book Answer 44) Accounting Information System (ais) Answer 45) Debit Note Answer 46) Returns Inwards Day Book Answer 47) Sales Invoice Answer 48) Discounts Allowed Answer 49) Posting Answer 50) 'what If' Analysis Answer 51) Endorsement Answer 52) Paye (pay As You Earn) Answer 53) Day Books Answer 54) Drawer Answer 55) Sales Day Book Answer 56) Reduced Rate (of Vat) Answer 57) Bought Ledger Answer 58) Debit Card Answer 59) Trade Discount Answer 60) Payee Answer 61) Switch Answer 62) Direct Debit Answer 63) Purchases Ledger Answer 64) Accounting Cycle Answer 65) Pay-in Slip Answer 66) Credit Note Answer 67) Petty Cash Book Answer 68) Columnar Purchases Day Book Answer 69) Credit Card Answer 70) Nominal Accounts Answer 71) Purchases Invoice Answer 72) Plastic Card Answer 73) Personal Identification Number Or Pin Answer 74) Imprest System Answer 75) Bank Statement Answer 76) Account Codes Answer 77) Zero Rate (of Vat) Answer 78) Bank Giro Credit Answer 79) Exception Reporting Answer 80) Sales Ledger Answer 81) Purchases Day Book Answer 82) Bank Cash Book Answer 83) Smart Card Answer
Revision Bitesize Books Of Prime Entry
Answers1) Books where the first entry recording a transaction is made (These are sometimes referred to as 'Books of original Entry'.)
Question 2) Amounts each person may subtract from income in order to arrive at taxable income The value of each allowance is set by Parliament following the Budget each year They are for things like being married, caring for a dependent relative, etc.
Question 3) A deduction from the amount due given to a business by a supplier when their account is paid before the time allowed has elapsed It appears as income in the profit and loss part of the trading and profit and loss account.
Question 4) The process by which amounts paid by cheque from an account in one bank are transferred to the bank account of the payee.
Question 5) The VAT rate usually used.
Question 6) VAT added to the net price of inputs (i.e purchases).
Question 7) The amount at which the petty cash starts each period.
Question 8) A tax charged on the supply of most goods and services.
Question 9) A payment card that requires the cardholder to settle the account in full at the end of a specified period, e.g American Express and Diners cards Holders have to pay an annual fee for the card (Compare this to a credit card.)
Question 10) A bank account for money to be kept in for a long time.
Question 11) A medium used to enable payments to be made automatically at given dates into a bank account for an amount agreed by the payer.
Question 12) Accounts in which property of all kinds is recorded.
Question 13) A contra, for Cash Book items, is where both the debit and the credit entries are shown in the Cash Book, such as when cash is paid into the bank.
Question 14) Book of original entry for goods returned to suppliers Also called the Returns Outwards Journal or the Purchases Returns Book.
Question 15) A bank account used for regular payments in and out of the bank.
Question 16) A facility granted by a bank that allows a customer holding a current account with the bank to spend more than the funds in the account Interest is charged daily on the amount of the overdraft on that date and the overdraft is repayable at any time upon request from the bank.
Question 17) Purchases of goods and services.
Question 18) An amount of money advanced by a bank that has a fixed rate of interest that is charged on the full amount and is repayable on a specified future date.
Question 19) A plan quantified in monetary terms in advance of a defined time period – usually showing planned income and expenditure and the capital employed to achieve a given objective.
Question 20) All accounts other than debtors' and creditors' accounts.
Question 21) Book containing forms (cheques) used to pay money out of a current account.
Question 22) Altering volumes and amounts so as to see what would be likely to happen if they were changed For example, a company may wish to know the financial effects of cutting its selling price by £1 a unit Also called 'what if' analysis.
Question 23) A copy of a customer's personal account taken from the supplier's books.
Question 24) Taking present data and expected future trends, such as growth of a market and anticipated changes in price levels and demand, in order to arrive at a view of what the likely economic position of a business will be at some future date.
Question 25) A description and explanation of the transaction recorded in the journal.
Question 26) Businesses which do not have to add VAT to the price of goods and services supplied to them They cannot obtain a refund of VAT paid on goods and services purchased by them.
Question 27) A book of original entry for all items not contained in the other books of original entry.
Question 28) VAT added to the net price of outputs (i.e sales).
Question 29) A ledger for all accounts other than those for customers and suppliers.
Question 30) Manipulating accounting data to generate forecasts and perform sensitivity analysis.
Question 31) Another name for the General Ledger.
Question 32) The list of account codes used in a computerised accounting system.
Question 33) The number found by adding up an individual's personal allowances which is used to calculate that individual's tax liability.
Question 34) Columns used for entering reference numbers.
Question 35) A business that charges VAT at the standard rate on its sales.
Question 36) A business that only supplies zero-rated goods and services It does not charge VAT to its customers but it receives a refund of VAT on goods and services it purchases.
Question 37) A business that ignores VAT and treats it as part of the cost of purchases It does not charge VAT on its outputs It does not need to maintain any record of VAT paid.
Question 38) Accounts for creditors and debtors.
Question 39) Sales of goods and services.
Question 40) A book of original entry for cash and bank receipts and payments.
Question 41) A ledger for capital and drawings accounts.
Question 42) A business that has registered for VAT It must account for VAT and submit a VAT Return at the end of every VAT tax period.
Question 43) A Sales Day Book used to show the sales for a period organised in analysis columns according to how the information recorded is to be analysed Also called a Sales Analysis Book.
Question 44) The total suite of components that, together, comprise all the inputs, storage, transformation processing, collating, and reporting of financial transaction data It is, in effect, the infrastructure that supports the production and delivery of accounting information.
Question 45) A document sent to a supplier showing allowance to be given for unsatisfactory goods.
Question 46) Book of original entry for goods returned by customers Also called the Returns Inwards Journal or the Sales Returns Book.
Question 47) A document showing details of goods sold and the prices of those goods.
Question 48) A deduction from the amount due given to customers who pay their accounts within the time allowed.
Question 49) The act of transferring information into ledger accounts from books of original entry.
Question 50) Altering volumes and amounts so as to see what would be likely to happen if they were changed For example, a company may wish to know the financial effects of cutting its selling price by £1 a unit Also called sensitivity analysis.
Question 51) A means by which someone may pass the right to collect money due on a cheque.
Question 52) The system whereby income tax is deducted from wages and salaries by employers and sent to the Inland Revenue.
Question 53) Books in which credit sales, purchases, and returns inwards and outwards of goods are first recorded The details are then posted from the day books to the ledger accounts.
Question 54) The person making out a cheque and using it for payment.
Question 55) Book of original entry for credit sales Also called the Sales Journal.
Question 56) A lower VAT rate applicable to certain goods and services.
Question 57) A variant of a Purchases Ledger where the individual accounts of the creditors, whether they be for goods or for expenses such as stationery or motor expenses, can be kept together in a single ledger.
Question 58) A card linked to a bank or building society account and used to pay for goods and services by debiting the holder's account Debit cards are usually combined with other facilities such as ATM and cheque guarantee functions.
Question 59) A deduction in price given to a trade customer when calculating the price to be charged to that customer for some goods It does not appear anywhere in the accounting books and so does not appear anywhere in the financial statements.
Question 60) The person to whom a cheque is paid.
Question 61) A system that allows a debit card to be used to pay for goods and services in the UK In effect, it is the electronic version of paying by cheque.
Question 62) A medium used to enable payments to be made automatically into a bank account for whatever amount the recipient requests.
Question 63) A ledger for suppliers' personal accounts.
Question 64) The sequence in which data is recorded and processed until it becomes part of the financial statements at the end of the period.
Question 65) A form used for paying money into a bank account with the same bank.
Question 66) A document sent to a customer showing allowance given by a supplier in respect of unsatisfactory goods.
Question 67) A Cash Book for small payments.
Question 68) A Purchases Day Book used to record all items obtained on credit It has analysis columns so that the various types of expenditure can be grouped together in a column Also called a Purchases Analysis Book.
Question 69) A card enabling the holder to make purchases and to draw cash up to a pre-arranged limit The credit granted in a period can be settled in full or in part by the end of a specified period Many credit cards carry no annual fee (Compare this to a charge card.)
Question 70) Accounts in which expenses, revenue and capital are recorded.
Question 71) A document received by a purchaser showing details of goods bought and their prices.
Question 72) The generic name for the range of payment-related cards.
Question 73) A secret number issued by a bank to a customer so that the customer may use a debit card in an ATM.
Question 74) A system where a refund is made of the total paid out in a period in order to restore the float to its agreed level.
Question 75) A copy issued by a bank to a customer showing the customer's current account maintained at the bank.
Question 76) The computerised equivalent of the folio references used in a manual accounting system, whereby each ledger account is given a unique number.
Question 77) The VAT rate (of zero) that applies to supply of certain goods and services.
Question 78) A type of pay-in slip usually used when the payment is into an account held in a different bank The two types of form are virtually identical – a bank giro credit can be used instead of a pay-in slip, but not the other way around, as the details of the other bank need to be entered on the bank giro credit.
Question 79) A process of issuing a warning message to decision-makers when something unexpected is happening: for example, when expenditure against a budget is higher than it should be.
Question 80) A ledger for customers' personal accounts.
Question 81) Book of original entry for credit purchases Also called the Purchases Journal.
Question 82) A cash book that only contains entries relating to payments into and out of the bank.
Question 83) A card that holds details on a computer chip instead of a traditional magnetic stripe.
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