Exam (elaborations)
AAT Level 2 - Bookkeeping Controls questions with correct answers graded A+
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AAT Level 2 - Bookkeeping Controls questions with correct answers graded A+
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AAT Level 2 - Bookkeeping ControlsWhat payment methods have no effect on the bank balance? - correct answer ✔✔Cash withdrawn from
till
What 2 payment methods reduce the bank balance at a later date? - correct answer ✔✔Cheque and
Credit Card
What are the other 8 payment methods which reduce the bank balance on the date of withdrawal? -
correct answer ✔✔Cash from bank account
Debit Card
Bank Draft
Standing Order
Direct Debit
BACS
CHAPS
Faster Payments
Why are bank statements overdrafts shown as a debit? - correct answer ✔✔Because it's a debit from the
banks perspective
How does cash as a payment method work? - correct answer ✔✔You count it before it can be banked
and you need to determine how many of each type of coin or note you have and the total
What document is used for transferring cash to the bank account? - correct answer ✔✔Paying in slip
What is counter credit? - correct answer ✔✔A term used on bank statements to refer to cash and
cheques paid in to the businesses bank account at the banks counter
, Who are the 3 parties involved in a cheque? - correct answer ✔✔Drawee - The bank that has issued the
cheque and will have to pay the cheque
Payee - The supplier
Drawer - The customer who signs the cheque in order to make a payment
What is a dishonoured cheque? - correct answer ✔✔A cheque sent back to the payee so that payment
can be pursued in some other way as there are insufficient bank funds
What is on a credit card statement? - correct answer ✔✔All of the purchases on the card since the
previous statement
The total outstanding on the credit card
The minimum payment required
The date by which payment should reach the credit card company
What is a bank draft? - correct answer ✔✔A non-cancellable cheque drawn on the bank rather than the
customers account and the money is taken out of the businesses bank account plus a fee
What is a standing order? - correct answer ✔✔A method of making the same regular payment
What document is used to set up a standing order? - correct answer ✔✔Standing order schedule
What is direct debit? - correct answer ✔✔A method of payment which the receiver initiates and chooses
the amount of each payment
What document is used to set up a direct debit? - correct answer ✔✔A Direct Debit Mandate
What is BACS? - correct answer ✔✔Bank Automated Clearing System - A deposit of money by a payer
directly into a payees bank account
What is CHAPS? - correct answer ✔✔Clearing House Automated Payment System - An instruction by a
business to its bank to move money to the recipients account the same day so there is no chance for the
payment to be refused
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