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AAT Level 2 - Bookkeeping Transactions Exam Questions and Answers 100% Solved Guaranteed Success £7.48   Add to cart

Exam (elaborations)

AAT Level 2 - Bookkeeping Transactions Exam Questions and Answers 100% Solved Guaranteed Success

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AAT Level 2 - Bookkeeping Transactions Exam Questions and Answers 100% Solved Guaranteed Success What is the purpose of accounting? - To record and classify the businesses transactions accurately. What are the three types of business entities? - Sole Trader Partnership Limited Company What ...

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  • September 26, 2024
  • 13
  • 2024/2025
  • Exam (elaborations)
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  • AAT
  • AAT
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AAT Level 2 - Bookkeeping Transactions

Exam Questions and Answers 100%

Solved Guaranteed Success


What is the purpose of accounting? - ✔✔To record and classify the

businesses transactions accurately.

What are the three types of business entities? - ✔✔Sole Trader

Partnership

Limited Company

What is a sole trade business? - ✔✔The simplest form of business which is

managed and owned by one person who is responsible for the profits and

debts of the business.

What is a partnership? - ✔✔A business owned by 2+ people where profits

and debts are shared according to a profit sharing agreement.

What is a limited company? - ✔✔A business in which the shareholders

cannot be sued for the debts of the business.

What is revenue? - ✔✔Income from sales

, What are cash and credit sales and purchases? - ✔✔Cash

sales/purchases happen when money exchanges hands at the time of the

transaction whereas credit sales/purchases are invoiced at the time of

transaction but paid some time after.

What are the risks with credit sales? - ✔✔The person may not pay or pay

late

What is the sales process? - ✔✔Quotation is requested

Order is placed

Goods are dispatched

Payment Requested/Invoiced

(Goods may be returned to vendor by credit note)

Payment/Remittance Advice Note

What should be checked for accuracy on financial documents? - ✔✔Are

the names correct?

Goods/Services correct?

Product codes?

Price Per Unit?

Quantities?

Arithmetic?

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