AAT L3 Accounts Payable & Receivable Advanced 3

Question 1

A credit note received from a supplier reduces:

Accepted Answer

The amount owed by the business to the supplier

Answer

The amount owed by customers to the business

Answer

The business's bank balance

Answer

The VAT reclaimable on purchases

Question 2

The sales ledger control account (SLCA) opening balance was £18,000. During the month, invoices of £42,000 were issued, receipts of £35,000 were collected, and discounts of £1,000 were allowed. What is the closing balance?

Accepted Answer

£24,000

Answer

£25,000

Answer

£26,000

Answer

£23,000

Question 3

Which of the following is a method used to assess the creditworthiness of a new trade customer?

Accepted Answer

Obtaining a credit reference agency report, bank reference, or trade references

Answer

Checking the customer's social media profile

Answer

Asking the customer to provide their own financial forecast

Answer

Extending credit immediately and reviewing after one year

Question 4

In accounts payable, an accrual at period end is required when:

Accepted Answer

Goods or services have been received before the period end but the invoice has not yet been received

Answer

A supplier invoice has been received and paid within the period

Answer

A purchase order has been raised but goods have not yet arrived

Answer

A supplier has been paid in advance

Question 5

Which document triggers the recording of a purchase in the accounts payable ledger?

Accepted Answer

Supplier's invoice (matched and approved)

Answer

Purchase requisition

Answer

Supplier's quotation

Answer

Purchase order raised by the business

Question 6

Prompt payment of supplier invoices is important because it:

Accepted Answer

Maintains good supplier relationships and may retain early payment discounts

Answer

Reduces the VAT liability

Answer

Eliminates the need for purchase orders

Answer

Reduces the amount owed to HMRC