ETB Lesson - Starter

Which one of the following is an example of revenue income:

• The sale of a vehicle previously purchased for business use

• Redecoration of the property

• Discount allowed

• Receipts from the sale of goods to customers

Which one of the following is an example of capital expenditure:

• The purchase of goods for resale

• Discount allowed

• The purchase of an additional property

• Capital introduced by the owner

Select from the answers below (multiple answers allowed) which errors will NOT be disclosed by the trial balance

• Error of omission

• Error of original entry

• Two debits recorded for a transaction (no credit entry)

• Different amounts recorded for the debit and credit entries

• Reversal of entries 

From the following accounts, select the three accounts that are normally debit balances when generating a trial balance towards the end of a financial year:

• Purchases

• Purchases ledger control

• Sales ledger control account

• Discounts allowed

• VAT owing to HMRC

The accounting equation previously studied at AAT Level 2:

Assets - liabilities =

Using the image - what will be the bank account balance c/d?

• £21,000

• £7,540 c/d

• -£7,450 c/d (overdraft)

• £7,450 c/d

A trial balance which has additional columns added to include information for the financial statements is known as an:

• Extended Trial Balance (ETB)

• Extra Trial Balance (ETB)

• Enhanced Trial Balance (ETB)

• Escalated Trial Balance (ETB)