Tutorial 1 FA1

Which of the following transactions is likely to occur on a daily basis in a large business organisation?

• Credit sales

• Payroll

• Purchase of equipment

• Payment of suppliers

Which of the following comprises small cash transactions?

• Payment to service providers

• Petty cash

• Purchases of inventory

• Receipt from sales

What is the purpose of credit note?

• It is acknowledges a purchase on credit

• It is a reference from an agency detailing the creditworthiness of a new customer

• It is issued when a deposit is paid on goods

• It is issued to cancel all or part of a sales invoice

Which of the following is NOT an internal document for purchases?

• Supplier list

• Delivery note

• Good received note

• Purchase order

What is the purpose of a remittance advice?

• To indicate items now paid

• To identify goods received

• To advise remittances received

• For notification of goods dispatched

What is the purpose of purchase invoice?
(i) To claim back the sales tax
(ii) To identify the goods bought

(iii) To record how much is owed to the supplier

(iv) To record how much is owed from the customer

• (i) (ii) and (iii) only

• ALL

• (ii) and (iii) only

• (i) and (ii) only

Ken received a document from Minion Stationery Supplies for eight reams of paper, which they supplied three previously. How would Ken refer to this document?

• It is a good received notes

• It is a receipt

• It is a purchase invoice

• It is a credit note

What is the principal document used to record petty cash transaction in the petty cash records

• An invoice

• A till receipt

• A petty cash I.O.U

• A petty cash voucher

Which of the following is a source document for financial transactions?

• Statement of account from supplier

• Paying in slip

• Delivery note

• Good received note

Why must a business retain documents?

• Because it has always been done

• For historical purposes

• It is a requirement of tax law

• To facilitate planning