Using Accounting Software Flashcards
6 cards from real AAT L2 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Using Accounting Software flashcards as text
When setting up a new nominal account in accounting software, you must specify:
Answer: The account name, nominal code, and account type (e.g., income, expense, asset, liability)
Creating a new nominal account requires a unique code, a descriptive name, and classification of the account type (asset, liability, income, expense, etc.). This determines where it appears in the financial statements and how it is treated in reports.
Departments or cost centres in accounting software allow you to:
Answer: Analyse income and expenditure by different areas or departments of the business
Departments or cost centres enable a business to track and report income and expenditure by different areas (e.g., by location, project, or department). This provides more detailed management information without needing separate sets of accounts.
The output from accounting software that shows all transactions posted to a specific nominal account is called a:
Answer: Nominal activity report or account history
A nominal activity report (or account history) shows every transaction posted to a specific nominal code over a selected period. It includes dates, references, descriptions, and amounts, providing a complete audit trail for that account.
When entering an opening balance for a trade receivables control account, it is entered as a:
Answer: Debit balance
Trade receivables (debtors) is an asset. Assets have debit balances. The opening balance should be entered as a debit to correctly reflect the amount owed to the business by its customers at the start of the period.
An email integration feature in accounting software allows you to:
Answer: Email invoices, statements, and reports directly to customers and suppliers from within the software
Email integration enables the software to send documents such as sales invoices, customer statements, credit notes, and reports directly to customers and suppliers via email. This speeds up communication and reduces printing and postage costs.
Data security measures in accounting software include:
Answer: User passwords, access levels, and regular backups
Proper data security includes unique user passwords, different access levels (restricting what each user can view and do), regular backups, and physical security of the computer. These measures protect against unauthorised access, fraud, and data loss.