FA1 C1: Introduction to Business and Recording Transactions

Which of the following business transactions occurs on a daily basis in a large organization?

• Credit sales

• Payroll

• Purchases of equipment

• Payment of suppliers

Which of the transaction involves small cash transactions?

• Payments to rent owner

• Petty cash

• Purchase of raw materials

• Sales receipts

Credit note is used to:

• Acknowledge a credit purchase

• To review the credit worthiness of a new customer

• Issued when a deposit is being forfeited

• Cancels out all or part of a sales invoice

Which of the following is not an internal document generated for purchase?

• Supplier list

• Delivery note

• Goods received note

• Purchase order

What is the purpose of remittance advice?

• To indicate items now paid

• To identify goods received

• To advise remittances received

• To issue when goods are dispatched

The purpose of the purchase invoice?

i) To claim back sales tax

ii) To identify goods purchased

iii) To record how much is owed to suppliers

iv) To record how much is owed from the customer

• i, ii and iii

• All

• ii and iii

• i and ii

Which of the following document will be followed through after the goods received note, for a purchase transaction?

• Delivery note

• Invoice

• Statement

• Remittance advice

This type of business is owned by one person.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise

What is a business owned and operated by two or more people?

• Sole Proprietorship
• Partnership
• Corporation

What is the advantage of corporations?

• minimal government regulation
• limited liability
• short life span
• has one owner