Revision ITBK

What is a trade payable?

• A customer that owes you money

• A supplier you owe money to

What does the Statement of financial position show?

• financial statement calculating profit or loss made by a business

• financial statement statement showing the assets, liabilities and capital of a business

The payables ledger contains the ledger accounts for

• customers

• suppliers

• expenses

The ledger account that contains the accounts of customers who buy on credit is the

• general ledger

• receivables ledger

• payables ledger

The rules for entries in the Bank Account in the cash book is

• Money in is a debit, money out is a credit

• Money out is a debit, money in is a credit

The following must be checked and authorised for payment before a supplier payment can be prepared by a business that has received goods

• Supplier invoice

• delivery note

• remittance advice

• supplier account in the payables ledger

The cash book is

• a financial document

• the account kept by the bank of its customer's bank receipts and payments

• a part of double-entry bookkeeping only

• the book of prime entry for bank receipts and payments

Which one of the following is a book of prime entry

• Purchases account

• VAT account

• Purchase returns day book

• Payables ledger of M Ostrowski