Level ICB 2 Book Keeping Practice Questions & Answers 2024/2025

Level ICB 2 Book Keeping Practice Questions & Answers 2024/2025 As a bookkeeper, 'you must be careful what you say and do', what code of ethics does this fall under? - ANSWER-Integrity A business owner bringing a personal computer in to the business for use in the business is termed: - ANSWER-Capital Amounts owed to a business from its Debtors are termed? - ANSWER-Current Assets Goods purchased for resale is termed: - ANSWER-Revenue Expenditure A mortgage on business premises is termed: - ANSWER-Long Term Liability A debit entry usually represents: - ANSWER-Assets and Expenses The person responsible for and determines the purpose in which personal data is processed is called a? - ANSWER-Data Controller Sales are termed: - ANSWER-Revenue Income Why does data protection legislation exist? - ANSWER-To prevent a business holding personal information without legitimate reason It is the duty of every employer to ensure the welfare of all employees at work. What legislation does this fall under? - ANSWER-Health and Safety at work If a customer bought goods on credit from you for the value of £500 plus VAT. How would this be posted in your accounts? - ANSWER-DR Sales Ledger, CR Sales Account & CR VAT Output Account If a customer returned some damaged goods to you, how would this be posted to the accounts? - ANSWER-DR Sales Returns Account, DR VAT Account & CR Mrs Jones If you have to write off a customers debt after 5 months, how would you show this in the accounts? - ANSWER-DR Bad Debt Account & CR Customer Account A Credit Customer is known as? - ANSWER-Debtor The total of the balances on the individual Debtors accounts should be checked monthly with the balance on the: - ANSWER-Sales Ledger Control Account How would the business owner a business motor expense receipt to the accounts? (with own partial drawings) - ANSWER-Debit Motor Expenses, Debit VAT Input, Debit Drawings, Credit Bank Why must a business retain documents? - ANSWER-It is a requirement of the law If a customer cannot pay their outstanding balance, how old does the debt have to be in order to reclaim the VAT? - ANSWER-6 months Suppliers of the business are classed as: - ANSWER-Current Liabilities In the Construction Industry, Contractor is termed: - ANSWER-A person or business that runs a project and takes on self employed people to perform a service A debit balance would be expected to arise when the accounts are balanced at the period end on which of the following accounts? - ANSWER-Business Rates Account A Contractor cannot be a sub-contractor at the same time, True or False? - ANSWERFalse Which of the following is a Current Asset? - ANSWER-Petty Cash Funds Which of the following is a Current Liability? - ANSWER-Creditors A business sells some office furniture for £1080.00 Inc VAT. How would this be posted to the accounts? - ANSWER-Debit Bank £1080.00, Credit VAT £180.00, Credit Sale of Assets £900.00 A credit balance would be expected to arise when the accounts are balanced at the period end on which of the following accounts? - ANSWER-Creditors Account Amanda sets herself up in business as a limited company. 6 months in to trading she withdraws £800.00 from the bank for her own use. How will this be posted to the accounts? - ANSWER-DR: Directors Loan CR:Bank Which of the following are examples of revenue expenditure? - ANSWER-Purchase of stock for resale Vehicle Insurance Rent for office space The main income from a not for profit 'Club' comes from members annual fees. If the members pay in cash, how are these fees posted to the accounts? - ANSWER-DR Cash Account - CR Subscriptions Account Discount Received is classed as an expense? - ANSWER-False Continues.......