Tag: GCSE

Which ONE of the following is an objective of the sales “ordering” part of the sales system?

Select ONE answer:

1. Sales are only made to non-creditworthy customers
2. Goods are correctly invoiced
3. Cut-off is correct
4. Orders can be fulfilled

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Correct invoicing is an objective of the invoicing stage of the sales system. Cut-off affects the recording stage of the sales cycle.

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The following deficiencies have been identified in a sales system.

For the deficiency, select the MOST likely consequence which might arise as a result of that
deficiency.

• Customers are not required to evidence receipt of goods.

Select ONE answer:

1. Sales may be made to customers who cannot pay
2. Invoices may not be raised for all goods dispatched
3. Customers may not pay promptly
4. Customers might not be happy with the supplier

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – If customers do not evidence receipt of goods disputes may arise leading to slow payments.
4. Not correct

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The following deficiencies have been identified in a sales systems.

For the deficiency, select the MOST likely consequence which might arise as a result of that
deficiency.

• Dispatch documentation is not sequentially pre-numbered.

Select ONE answer:

1. Sales may be made to customers who cannot pay
2. Invoices may not be raised for all goods despatched
3. Customers may not pay promptly
4. Customers might not be happy with the supplier

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – If despatch notes are not pre-numbered they may be lost and therefore no invoice raised.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which ONE of the following is a risk associated with the sales system?

Select ONE answer:

1. Orders may be taken from customers who are not able to pay
2. Invoices may be cancelled by valid credit notes
3. Goods may be received but not invoiced
4. Sales will not be recorded in the wrong customer accounts

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct => If credit notes are valid, then the related invoice is cancelled. Goods received are part of the purchase system. As such, there are no risks associated with the sales system.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which ONE of the following is a risk associated with the sales system?

Select ONE answer:

1. Orders may be taken from customers who are able to pay
2. Invoices may be cancelled by valid credit notes
3. Goods may be received but not invoiced
4. Sales might be recorded in the wrong customer accounts

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct => If credit notes are valid then the related invoice is cancelled. Goods received are part of the purchases system. As such, they are not risks associated with the sales system.

This work is licensed under a Creative Commons Attribution 4.0 International License.