AAT L3 Accounts Payable & Receivable Advanced

Question 1

The aged receivables report is used to:

Accepted Answer

Identify how long customer invoices have been outstanding, aiding credit control

Answer

Calculate VAT owed to HMRC

Answer

Record all cash receipts in the period

Answer

Prepare the year-end trial balance

Question 2

A statement of account sent to a customer is used to:

Accepted Answer

Confirm the balance owed by the customer, listing all invoices, payments, and credits

Answer

Request a credit note from the supplier

Answer

Replace the sales invoice

Answer

Process a refund to the customer

Question 3

A credit limit for a customer should be set based on:

Accepted Answer

An assessment of the customer's creditworthiness, payment history, and financial position

Answer

The customer's geographic location

Answer

The value of the most recent order only

Answer

The business's own cash position

Question 4

When a supplier sends a statement of account, the purchase ledger team should:

Accepted Answer

Reconcile it against the purchase ledger to identify discrepancies

Answer

File it without review

Answer

Pay it immediately

Answer

Return it to the supplier as unnecessary

Question 5

Which document authorises the payment of a purchase invoice?

Accepted Answer

Authorised payment schedule or approved purchase invoice

Answer

Purchase requisition

Answer

Goods received note

Answer

Delivery note from the customer

Question 6

The purpose of a remittance advice sent to a supplier is to:

Accepted Answer

Inform the supplier which invoices and credit notes are included in a payment

Answer

Request a discount on the invoice

Answer

Confirm the delivery of goods

Answer

Query an invoice amount