AAT L2 Using Accounting Software

Question 1

When setting up a new business in accounting software, which of the following must be entered first?

Accepted Answer

The chart of accounts and opening balances

Answer

Sales invoices

Answer

Customer transactions

Answer

The VAT return

Question 2

A chart of accounts in accounting software is:

Accepted Answer

A structured list of all nominal ledger accounts used by the business

Answer

A graph showing the business performance

Answer

A list of all customers and suppliers

Answer

A bank reconciliation report

Question 3

When entering a customer invoice in accounting software, the software automatically:

Accepted Answer

Calculates and posts the double entry including VAT

Answer

Sends the invoice to the customer

Answer

Orders replacement stock

Answer

Sends a copy to HMRC

Question 4

When processing a supplier payment in accounting software, you must:

Accepted Answer

Allocate the payment against specific outstanding invoices

Answer

Create a new invoice first

Answer

Enter the payment as a journal

Answer

Delete the original invoice

Question 5

A recurring transaction in accounting software is used for:

Accepted Answer

Transactions that occur regularly at set intervals, such as monthly rent

Answer

One-off unusual transactions

Answer

Correcting errors in the ledger

Answer

Year-end adjustments only

Question 6

The purpose of nominal codes in accounting software is to:

Accepted Answer

Classify and organise ledger accounts by a numerical coding system

Answer

Identify individual customers by number

Answer

Calculate VAT on transactions

Answer

Generate bank statements