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AAT Level 2 - Bookkeeping Controls Questions and Answers 100% Pass

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AAT Level 2 - Bookkeeping Controls Questions and Answers 100% Pass What is the function of a sales ledger in bookkeeping? The sales ledger records all transactions related to sales on credit, including amounts owed by customers and details of each sale. How should discrepancies between in...

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AAT Level 2 - Bookkeeping Controls
Questions and Answers 100% Pass

What is the function of a sales ledger in bookkeeping?

✔✔ The sales ledger records all transactions related to sales on credit, including amounts owed

by customers and details of each sale.

How should discrepancies between internal records and the bank statement be addressed?

✔✔ Discrepancies should be reviewed and investigated to determine the cause, and necessary

adjustments should be made to ensure accuracy in the records.

What is a journal entry, and when is it used?

✔✔ A journal entry is a record of financial transactions in the journal, used to document and

track all changes to accounts before posting them to the ledger.

What is the purpose of the nominal ledger?

✔✔ The nominal ledger, also known as the general ledger, provides a complete record of all

financial transactions categorized by account type, such as income, expenses, assets, and

liabilities.

1

, What does ‘posting’ mean in bookkeeping?

✔✔ Posting refers to the process of transferring information from the journal to the individual

accounts in the ledger, ensuring that all transactions are recorded accurately.

How do you handle a customer overpayment in the accounts?

✔✔ A customer overpayment should be recorded as a credit to the customer's account and can be

applied to future invoices or refunded, depending on the agreement.

What is the role of an audit trail in bookkeeping?

✔✔ An audit trail provides a record of all transactions and changes made to the accounts,

allowing for verification and tracing of financial data for accuracy and accountability.

What are accrued expenses, and how are they recorded?

✔✔ Accrued expenses are costs that have been incurred but not yet paid or recorded in the

accounts. They are recorded as liabilities in the accounts until payment is made.

What is the difference between a capital expenditure and an operational expenditure?

2

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