In the accounting equation, which arrangement is correct?
Set Up Bookkeeping Systems
Question · Easy
Why a balance sheet balances
Short
What is the accounting equation, and why must it always balance?
Flashcard
A business buys a delivery van to use for several years. How should this expenditure be classified?
Present economic resource controlled by a business from past events—such as equipment, receivables, or money at the bank—that equals liabilities plus capital in the accounting equation.
Bookkeeping Systems Setup
Guess the Term
Chapter 1: Setting Up Bookkeeping Systems
1.1 The Accounting Equation and Account Classification
Study guide
Cheat sheet
Which of the following is an example of revenue expenditure?
Read the clue and guess the term in 6 tries.
Game
How do you distinguish capital expenditure from revenue expenditure?
Following the dual effect (double-entry) principle, every transaction is recorded with:
Residual interest in the resources of an entity after deducting all of its liabilities, paired with capital in the AAT bookkeeping classification of financial position items.
Which one of the following is a liability of a business?
A business buys a laptop for staff use. Is this an asset or an expense?
What is the main purpose of using account codes in a bookkeeping system?
Classification paired with revenue for inflows from sales or services that increase assets or decrease liabilities and raise owner capital without new owner contributions.
1.2 Capital and Revenue Expenditure
In a digital (cloud) bookkeeping system, which task is typically automated?
Question · Medium
Swap tiles to line up three of the same term.
Term Match
What does the DEAD CLIC mnemonic tell you about debits and credits?
A business has assets of £85,000 and liabilities of £30,000. What is the capital?
Term paired in parentheses with expenses in the AAT bookkeeping classification for operating outlays—such as rent, printing, or repairs—that reduce owner capital.
Which document is sent by a supplier to a customer to formally request payment for goods supplied on credit?
Why do bookkeeping systems use coding for customers, suppliers, products and nominal accounts?
What is the purpose of a credit note issued to a customer?
Positive financial performance figure reported on the primary performance statement when a business's recognised revenue and gains exceed its expenses for the period.
1.3 Coding Systems and Books of Prime Entry
Which of the following is classified as income (revenue) rather than an asset?
Flip two cards at a time to find matching terms.
Term Pairs
What are the 'books of prime entry'?
On which side of a ledger account is an increase in an asset recorded?
Alphabetical, numerical, or alphanumerical reference—such as CLEN078 for a customer or 0001 for a general ledger page—used to identify accounts and products in daybooks.
Drawings taken by the owner from the business should be recorded as:
What's the difference between a book of prime entry and a ledger account?
Why might a business use a general ledger code in addition to a customer account code on a sales invoice?
Plain-text tabular file format listed alongside bank records and third-party software as an external source from which digital bookkeeping packages import transaction data.
Chapter 2: Processing Customer Transactions
2.1 Sales Invoices and Credit Notes
Which of these is a book of prime entry rather than a ledger?
Find five hidden terms in a grid of letters.
Term Search
Name the three main types of ledger in a double-entry system.
A sales invoice shows goods of £200 plus VAT at the standard UK rate of 20%. What is the total invoice value?
Process Customer Transactions
Remotely hosted internet software delivery model cited alongside desktop packages and applications in the AAT unit introduction as a form of digital bookkeeping system.
A customer is offered a 10% trade discount on a list price of £500. What net amount, before VAT, is entered on the invoice?
A customer disputes an invoice total. Which document confirms what they were sent and when?
Goods are sold for £400 net with a 5% bulk discount, then VAT at 20% is added. What is the total invoice value?
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