A primary difference between an invoice and a receipt is that:

Select one:

a. For tax purposes, transactions require a receipt, not an invoice.

b. Invoices are only issued with credit transactions; receipts are issued with both credit and cash transactions.

c. An invoice reflects that a sale was made; a receipt reflects that money changed hands.

d. Nothing the terms are synonymous.

Which of the following reflects the treatment of a payment by credit card by the business and the customer, respectively, when the customer buys stationery from the business?

Select one:

a. Debit debtors control, credit sales; debit stationery, credit liabilities

b. Debit debtors control, credit sales; debit stationery, credit bank

c. Debit bank, credit sales; debit stationery, credit bank

d. Debit bank, credit sales; debit stationery, credit liabilities

The bank statement would function as the primary source document for which two of the following transactions?

Select more than one:

a. Sale made to a customer, using his debit card

b. Monthly bank fees

c. Purchase from a supplier, by cheque

d. Interest received on current account balance

A business receiving a payment from a debtor would reflect as a ______ in the bank account of the businesss books, and as a ______ in the businesss bank statement.

Select one:

a. Debit, debit

b. Credit, debit

c. Debit, credit

d. Credit, credit

Top Drawer Cleaning CC has received a cheque from one of its customers, in payment of their account. The cheque has two lines across the top left corner, has or bearer crossed out, and has cash written on the pay line. Geraldine Adams, the sole member of the CC, wishes to exchange to cheque for hard cash at the bank teller, and wants to know whether this will be possible. Which of the following statements is the most correct?

Select one:

a. It will be possible as the cheque has cash written on it, anybody may cash it.

b. It will not be possible it would have to be made out to her personally to be able to cash it.

c. It will be possible as the sole member of the CC, she can perform any function on behalf of the CC.

d. It will not be possible as the cheque is crossed, it must be paid directly into an account.

Assuming the business in question is a VAT vendor, when amounts are collected from debtors, is VAT calculated in the cashbook receipts? Why or why not?

Select one:

a. Yes if the business is a VAT vendor, VAT must always be calculated.

b. No VAT would already have been calculated at the time of the sale.

c. No the VAT is only calculated in an adjusting general journal entry.

d. Yes VAT should only be accounted for on receipt of payment.

Is there a difference between receiving money from a debtor and paying a creditor, when it comes to the recording of VAT in the respective journals?

Select one:

a. Yes the business records the VAT when receiving money from a debtor, but not when paying a creditor.

b. Yes the business records the VAT when paying a creditor, but not when receiving money from a debtor.

c. No the VAT would already have been recorded in the debtors and creditors journals, respectively.

Which of the following statements is the most correct?

Select one:

a. No petty cash transactions are recorded in the cash payments journal.

b. Only the initial withdrawal from the bank, to fill the petty cash box, is recorded in the cash payments journal.

c. All petty cash transactions are recorded in the cash payments journal.