AAT Level 1 Unit 1 Questions with Correct Answers Latest Update 2025 Graded A+
Private Sector - Answers The part of the economy consisting of privately owned businesses that are set
up to make a profit. These include sole traders, partnerships and limited companies.
Profit - Answers The amount of money a business makes when all expenses have been deducted from
turnover.
Shareholders - Answers The owners of limited companies. They invest money in a company in the hope
that it will make a profit, so they will get a return on the money they invested.
Public Sector - Answers The part of the economy consisting of publicly owned organisations that provide
services to citizens. These organisations are paid through taxation.
Charities - Answers Organisations set up to raise money and awareness to promote a particular cause
and to provide services for specific groups.
Sole trader - Answers A business owned by one person, The sole trader is responsible for all debts but
also receives all the profit.
Partnership - Answers Business agreements between two or more people. Same risk as a sole trader,
share all profits. Can be up to 20 partners.
Public Limited Company (plc) - Answers Not responsible for business debts. Owned by the government.
Private Limited Company (Ltd) - Answers Not responsible for business debts. Owned by shareholders.
Internal customer - Answers A person from inside the organisation who requests financial information
from the organisation's accounts department.
External customer - Answers A person from outside the organisation who requests information from the
accounts department.
Function - Answers An activity carried out in an organisation, often in a department of the same name.
Accounting Profesionals - Answers People who have qualifications in accountancy, they are usually
members of a profesional body such as the AAT.
Support - Answers To provide help and information to another function within the organisation.
Confidential - Answers Private or Sensitive.
Legal - Answers In Keeping with the law.
Professional - Answers A person who is qualified to carry out a task with a high level of expertise and
skill.
Private Sector - Answers The part of the economy consisting of privately owned businesses that are set
up to make a profit. These include sole traders, partnerships and limited companies.
Profit - Answers The amount of money a business makes when all expenses have been deducted from
turnover.
Shareholders - Answers The owners of limited companies. They invest money in a company in the hope
that it will make a profit, so they will get a return on the money they invested.
Public Sector - Answers The part of the economy consisting of publicly owned organisations that provide
services to citizens. These organisations are paid through taxation.
Charities - Answers Organisations set up to raise money and awareness to promote a particular cause
and to provide services for specific groups.
Sole trader - Answers A business owned by one person, The sole trader is responsible for all debts but
also receives all the profit.
Partnership - Answers Business agreements between two or more people. Same risk as a sole trader,
share all profits. Can be up to 20 partners.
Public Limited Company (plc) - Answers Not responsible for business debts. Owned by the government.
Private Limited Company (Ltd) - Answers Not responsible for business debts. Owned by shareholders.
Internal customer - Answers A person from inside the organisation who requests financial information
from the organisation's accounts department.
External customer - Answers A person from outside the organisation who requests information from the
accounts department.
Function - Answers An activity carried out in an organisation, often in a department of the same name.
Accounting Profesionals - Answers People who have qualifications in accountancy, they are usually
members of a profesional body such as the AAT.
Support - Answers To provide help and information to another function within the organisation.
Confidential - Answers Private or Sensitive.
Legal - Answers In Keeping with the law.
Professional - Answers A person who is qualified to carry out a task with a high level of expertise and
skill.
