Source Documents And Coding In Accounting MA1 Questions

In this article, we will cover the questions from the chapter source documents and coding. This will be helpful for those who are doing their MA1. So let’s begin with our first question about source documents and coding. FA1 exam

Questions

1. Which of the following is usually responsible for preparing a delivery note?

1. Buyer
2. Supplier
3. Store manager
4. Accountant

2. Which of the following is in the correct chronological sequence for sale documents?

1. Enquiry-order-invoice-payment
2. Order-enquiry-invoice-payment
3. Inquiry -order-payment-invoice
4. Enquiry-invoice-order-payment

3. Which of the following sequence for documents is correct for purchase?

1. Purchase order-invoice-goods received a note-delivery note
2. Delivery note-goods received note-purchase order-invoice
3. Purchase order-delivery note-goods received note-invoice
4. Goods received note-delivery note-purchase order-invoice

4. You are the accountant responsible for the input into the computer accounting system of the data about goods received from the supplier. For each transaction, you require a copy of the purchase order. delivery note, goods received note, and invoice. [Double-entry exam questions]

Where are you most likely to find the code number of an item for inventory for entering into the system?

1. Purchase order
2. Delivery note
3. Goods received note
4. Invoice

5. Which of the following is least likely to be carried out by the accounting department?

1. Collecting money receivable from a credit customer
2. Receiving goods from suppliers into the store
3. Processing the expenses claims [Production overheads]
4. Arranging the payment of tax to the tax authorities

Coding questions 6,7

6. A firm uses a unique code to identify each customer account. The code consists of the first three letters of the customer’s name followed by four digits.

Which of the following will appear first when the customers are sorted into descending order?

1. TRO1100
2. TRO1214
3. TOP1213
4. TOR1102

7. A firm uses a unique code to identify each customer- the first four letters of each name are followed by four digits.

Which one of the following will appear first when customers are sorted into descending order?

1. ADAM0001
2. ADAA0099
3. ADDA0100
4. ABAB0999

8. Which of the following is the correct sequential flow of documents to complete the purchase of goods on credit?

1. Goods received a note-purchase order-cheque requisition-delivery note
2. Purchase order-delivery note-goods received note-invoice-cheque requisition
3. Purchase order-good received note-delivery note-cheque requisition-invoice
4. invoice-good received note-cheque requisition note-delivery note

9. Which member of staff is most likely to raise a good received note?

1. Delivery driver
2. Finance director
3. Sales ledger clerk [Business transaction and documentation]
4. Store clerk

10. Which of the following describes a purchase order?

1. Issue by the purchasing department and send to the supplier requesting the material
2. Issued by the store department and send to the purchasing department requesting materials
3. Received together with the material and compared to the material received
4. Issued by the production department and sent to the store department requesting the material

11. What is the purpose of the source document?

1. It provides proof of a transaction
2. It provides only detail of an event
3. It has no use in recording transaction
4. It provides the details of a purchase order

12. What is source data?

1. It is a complete and processed information
2. It is only raw data
3. Senseless sentence
4. Processed data but has no use in a business

13. Which of the following are examples of source documents?

1. Invoice and quotations
2. Invoice and balance sheet
3. Balance and income sheet
4. Quotations and balance sheet

Answers

1. (2)
2. (1)
3. (3)
4. (3)
5. (2)
6. (2)
7. (3)
8. (2)
9. (4)
10. (1)
11. (1)
12. (2)
13. (1)

FAQS

What are the source documents in accounting?

The source documents are the source of information that is collected for maintaining the accounting records.

What are the examples of source documents?

Following are the common source of documents,

1. Invoice
2. Receipts
3. Credit notes
4. Timesheet
5. Deposit slip, etc

Is the ledger a source document?

A ledger is a book that is used in accounting to record financial transactions, source documents are the documents that are inputted into the ledger.

Importance of the source document

Source documents are very important for internal control as it provides the authentication that a transaction has happened or occurred. The Source of documents increases the efficiency of an accountant in analyzing and preparation of financial documents.

What are the types of source documents?

A source document can be an internal document or an external document.

What are the 5 source documents?

1. Invoice
2. Receipts
3. Purchase order
4. Timesheet
5. Bank statement

Besides this, there are many other source documents that are used in a business on daily bases.

5 importance of source documents

1. It helps to verify the transactions whether it has happened or not
2. Helps in legal complaints
3. It helps to track and monitor the event in the business
4. It helps in auditing
5. It helps to reconcile the financial statement

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