C&G Computerised Accounts - Level 2 | Attempts: 97

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| By Satpal Singh

Satpal Singh

Community Contributor

Quizzes Created: 3 | Total Attempts: 1,562

Questions: 10 | Attempts: 97 | Updated: Jul 10, 2024

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C&g Computerised Accounts - Level 2 - Quiz

You have completed the computerised accounts level 2 course. This is your end of the course review.

Questions and Answers

1.

You are preparing a sales invoice and goods totals comes to £500.00, If the VAT rate is 17.5%, what is the VAT amount to be added to the invoice?
- A.
  
  £87.50
- B.
  
  £90.60
- C.
  
  £82.60
- D.
  
  £117.50
Correct Answer
A. £87.50

Explanation
Working: 500 X 17.5/100 = 87.50

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2.

Which one of the following documents must be issued for credit sales?
- A.
  
  Delivery Note
- B.
  
  Invoice
- C.
  
  Sales Order
- D.
  
  Cash Receipt
Correct Answer
B. Invoice

Explanation
An invoice must be issued by the seller

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3.

If your business is VAT registered, which one of the following is correct?
- A.
  
  You do not have to account for VAT to the HMRC
- B.
  
  You have to send a VAT return for your Sales and Purchases to HMRC
- C.
  
  You do not have pay VAT on your purchases
- D.
  
  You do not receive VAT from your customers
Correct Answer
B. You have to send a VAT return for your Sales and Purchases to HMRC

Explanation
VAT registered businesses are required by the law to account for their Sales and Purchases transactions using VAT.

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4.

Select the correct Accounting Equation from the following options.
- A.
  
  Capital = Liabilities - Assets
- B.
  
  Assets - Liabilities = Capital
- C.
  
  Liabilites - Capital = Assets
- D.
  
  Assets + Liabilities = Capital
Correct Answer
B. Assets - Liabilities = Capital

Explanation
Accounting equation informs about the status of the business. The Balance Sheet reprot is prepared using this accounting principles.

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5.

Which tax code is used for entering wages transactions in the Sage?
- A.
  
  T8
- B.
  
  T4
- C.
  
  T9
- D.
  
  T5
Correct Answer
C. T9

Explanation
Payment for wages is out of the scope of VAT. Sage Line 50 uses T9 for these transactions

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6.

What type of tax is VAT?
- A.
  
  It is also known as Value And Taxation for business
- B.
  
  VAT is a tax on the business income
- C.
  
  VAT is a tax on consumer expenditure
- D.
  
  VAT is a tax on wages paid by the businesses
Correct Answer
C. VAT is a tax on consumer expenditure

Explanation
VAT is paid by the end user of the products and services.

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7.

You make a cash sale for £200 (No VAT). Which of the following pairs of nominal accounts are affected?
- A.
  
  Rent Account and Bank Account
- B.
  
  Cash Account and Sales Account
- C.
  
  Sales Account and Trade Debtors Account
- D.
  
  Purchases Accounts and Bank Account
Correct Answer
B. Cash Account and Sales Account

Explanation
You debit the cash account and Credit the Sales account

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8.

The accounts used to record double entries are called ?
- A.
  
  Profit and Loss accounts
- B.
  
  Nominal Accounts
- C.
  
  Sales Ledger
- D.
  
  Purchases Ledger
Correct Answer
B. Nominal Accounts

Explanation
Nominal accounts are part of the main ledger where all business transactions are recorded using double entry system.

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9.

Which one of the following is the standard system used to record transactions?
- A.
  
  The Accounting equation
- B.
  
  Single entry
- C.
  
  Double entry
- D.
  
  Chart of Accounts
Correct Answer
C. Double entry

Explanation
A double-entry bookkeeping system is a set of rules for recording financial information in a financial accounting system in which every transaction or event changes at least two different nominal ledger accounts.

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10.

Which tax code is normally used for entering reduced rate transactions in the Sage software?
- A.
  
  T8
- B.
  
  T4
- C.
  
  T9
- D.
  
  T5
Correct Answer
D. T5

Explanation
Transactions for domestic fuel such as Gas and eletricity use 5% VAT rate. Code T5 is normally setup for these transactions in Sage.

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Current Version
Jul 10, 2024

Quiz Edited by
ProProfs Editorial Team
Mar 13, 2011

Quiz Created by
Satpal Singh

C&g Computerised Accounts - Level 2

You are preparing a sales invoice and goods totals comes to £500.00, If the VAT rate is 17.5%, what is the VAT amount to be added to the invoice?

Which one of the following documents must be issued for credit sales?

If your business is VAT registered, which one of the following is correct?

Select the correct Accounting Equation from the following options.

Which tax code is used for entering wages transactions in the Sage?

What type of tax is VAT?

You make a cash sale for £200 (No VAT). Which of the following pairs of nominal accounts are affected?

The accounts used to record double entries are called ?

Which one of the following is the standard system used to record transactions?

Which tax code is normally used for entering reduced rate transactions in the Sage software?