Question 1

To ensure that all entries are accurate, it is important to:&#10;A) check all information provided is correctly entered&#10;B) reconcile the accounts payable and receivable with the general ledger&#10;C) audit the financial records at the end of every day&#10;D) have a second person check everything you do each day

Accepted Answer

B

Question 2

Whenever a payment is made it must be:&#10;A) updated in the general ledger&#10;B) deducted from the debits records&#10;C) entered into the correct account in the correct manner&#10;D) added to the expenses records

Accepted Answer

Whenever a payment is made, it must be entered into the correct account in the correct manner, ensuring that the transaction is accurately recorded. Updating the general ledger, deducting from debits records, and adding to expenses records are also important steps in the accounting process, but they may not apply to every payment made. Therefore, the best choice is C. Making sure that payments are entered into the correct account in the correct manner ensures accurate financial records. Updating the general ledger and deducting from debit records may also be necessary but are not as important as entering payments correctly. Adding the payment to expenses records may not be appropriate as it depends on the nature of the payment.

Question 3

The operating cycle of an organisation is the:&#10;A) process of recording financial data&#10;B) procedures used to control finances&#10;C) system through which its cash flows&#10;D) system that the staff work under

Accepted Answer

The operating cycle of an organisation refers to the system through which its cash flows, encompassing the various steps involved in the production and sale of goods and services, and the collection of the resulting revenues. It typically begins with the purchase of raw materials and ends with the receipt of cash from customers who purchase the finished products. Therefore, option C is the correct answer. Options A, B, and D are incorrect as they do not accurately describe the operating cycle. The operating cycle of an organisation refers to the system through which its cash flows, including the processes of purchasing inventory, selling goods or services, and receiving payments from customers. It is a measure of how quickly a company can turn its inventory into cash, and therefore is closely tied to its financial performance. Recording financial data, controlling finances, and staff working systems are not specific to the operating cycle.

Question 4

When an account customer makes a purchase they will:&#10;A) require a full written invoice of everything purchased by the company&#10;B) need to sign a contract of sale&#10;C) want you to provide them with the goods within 48 hours&#10;D) either take the goods with them immediately or have them delivered

Accepted Answer

An account customer can either take the goods with them immediately or have them delivered. They do not necessarily require a full written invoice or sign a contract of sale, although these may be provided for record-keeping purposes. Additionally, the timeframe for delivery may vary depending on the agreement between the company and the account customer. When an account customer makes a purchase, they may either take the goods with them immediately or have them delivered. They may require a full written invoice, but it is not always necessary. A contract of sale may also be signed, but it depends on the specific terms of the sale. Additionally, the timeline for providing the goods may vary depending on the agreement between the buyer and seller. Therefore, the best choice is D.

Question 5

An invoice is normally supplied along with the delivered goods outlining:&#10;A) any discounts applicable and the due date for payment&#10;B) the condition the goods are in&#10;C) what the customer needs to do with the goods&#10;D) any specific costs that are required

Accepted Answer

An invoice provides information about the payment due date and any applicable discounts. It does not typically provide information about the condition of the goods, what the customer needs to do with them, or any specific costs required. An invoice typically includes information about any applicable discounts (such as early payment discounts) and the due date for payment. It does not typically include information about the condition of the goods, what the customer needs to do with them, or specific costs that are required.

Question 6

Keeping financial records accurately is a complex issue that can only be completed with specific skills and knowledge to ensure work is completed expertly; this work can only be done by a qualified person.

Accepted Answer

While keeping accurate financial records can be complex and may require specific skills and knowledge, it is not exclusively the domain of qualified professionals. Many small business owners, entrepreneurs, and individuals manage their own financial records successfully with the help of software, guides, and sometimes basic training or workshops.

Question 7

The bookkeeping process does not ensure that an organisation always knows exactly how much money it has to determine their financial position.

Accepted Answer

Bookkeeping involves recording and tracking all financial transactions, including income and expenses, which helps an organization know its financial position at any given time.

Question 8

Errors are only found in financial documentation such as purchase credit notes, purchase invoices, sales credit notes and sales invoices.

Accepted Answer

Errors can be found in all types of documentation, not just financial documents. Errors can be found in any type of documentation, not just financial ones. For example, errors can also be found in contracts, agreements, forms, and other types of written communication.

Question 9

Money being paid to you is classified as 'income', while money you must pay someone else is classified as an 'expense'.

Accepted Answer

This statement is true. Income refers to money or any form of payment received by an individual, while expenses refer to the money paid by an individual to purchase goods or services from others. This is the correct definition of income and expenses in accounting. Income is any money received by a person or business, while expenses are any money that is paid out.

Question 10

Accounting is concerned with balancing the organisation's financial accounts.

Accepted Answer

Accounting is mainly concerned with recording, classifying, and summarizing financial transactions to produce financial statements that show the organization's financial position, performance, and cash flows. Balancing the accounts is an important part of this process. Accounting is the process of recording, classifying, summarizing and interpreting financial transactions to help businesses make informed decisions. One of the key roles of accounting is to ensure that the organisation's financial accounts are balanced and accurate.

Deck 20: Maintain Financial Records