AAT L2 Using Accounting Software 2

Question 1

When entering opening balances in accounting software at the start of a new financial year, the balancing figure should be posted to:

Accepted Answer

The capital or retained earnings account

Answer

When entering opening balances, the difference between total debits and total credits represents the owner's capital or retained earnings brought forward. This is the balancing figure that ensures the accounting equation holds.

Question 2

A credit note from a supplier should be entered in accounting software as:

Accepted Answer

A purchase credit note

Answer

A credit note received from a supplier reduces the amount owed to that supplier. It should be entered as a purchase credit note, which will debit the purchase ledger (reducing the payable) and credit purchases or the relevant expense account.

Question 3

Which report from accounting software shows the financial position of the business at a specific date?

Accepted Answer

Statement of financial position (balance sheet)

Answer

The statement of financial position (balance sheet) shows the assets, liabilities, and capital of the business at a specific date. It is a snapshot of the financial position, unlike the profit or loss account which covers a period.

Question 4

Bank receipts in accounting software are recorded by:

Accepted Answer

Using the bank receipts function and selecting the appropriate ledger account

Answer

Bank receipts (money received into the bank) should be entered through the bank receipts function. The user selects the bank account and the appropriate nominal code (e.g., trade receivables for customer payments, or a specific income account).

Question 5

The aged payables report shows:

Accepted Answer

How much the business owes each supplier, analysed by age

Answer

The aged payables (aged creditors) report lists all amounts owed to suppliers, broken down by the length of time invoices have been outstanding (e.g., current, 30 days, 60 days, 90+ days). It helps manage cash flow and supplier payment schedules.

AAT Level 2 Practice Test

AAT Level 2 Practice Test

AAT L2 Using Accounting Software 2