AAT L2 Using Accounting Software 5

Question 1

A credit limit set on a customer account in accounting software:

Accepted Answer

Sets the maximum amount of credit the business will extend to that customer

Answer

Determines the maximum discount the customer can receive

Answer

Limits the number of invoices that can be raised

Answer

Sets the maximum payment period

Question 2

Payment terms of '30 days net' on a supplier account means:

Accepted Answer

The full invoice amount is due within 30 days of the invoice date

Answer

A 30% discount is available

Answer

Payment must be made in 30 equal instalments

Answer

The supplier will deliver within 30 days

Question 3

When setting up VAT codes in accounting software, the standard rate VAT code in the UK should be set to:

Accepted Answer

20%

Answer

15%

Answer

17.5%

Answer

25%

Question 4

A refund to a customer in accounting software should be processed by:

Accepted Answer

Issuing a credit note and then processing a bank payment for the refund amount

Answer

Entering a purchase invoice

Answer

Deleting the original sales invoice

Answer

Entering a journal credit to the bank account

Question 5

The trial balance generated by accounting software:

Accepted Answer

Lists all account balances and should have equal debit and credit totals if the software has been used correctly

Answer

Is always correct because the software cannot make errors

Answer

Only shows bank transactions

Answer

Is submitted directly to HMRC

Question 6

Why is it important to take regular backups of accounting software data?

Accepted Answer

To protect against data loss from hardware failure, corruption, or human error

Answer

HMRC requires daily backups

Answer

Backups improve the speed of the software

Answer

Backups are only needed at year end