Boost Your Career With An AAT Qualification

AAT Skillcheck

Whether you're new to accounting or looking to develop existing skills, AAT Skillcheck can help you choose the right qualification.

Interested in starting your AAT journey but unsure where to start?

AAT Skillcheck will give you guidance on the best AAT qualification for you, based on your skills, knowledge and experience.

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Section 1 of 4 : Double entry bookkeeping

The accounting system is based on five classifications of accounts: assets, liabilities, equity, income and expenses. Which of the following are examples of expenses? Select three answers.*

Repairs and maintenance

Interest earned

Employee salaries

Office electricity bill

Loan repayments

Section 1 of 4 : Double entry bookkeeping

What is the dual effect of purchasing a non-current asset on a credit basis?*

Increase in assets and decrease in liabilities

Increase in assets and increase in liabilities

Increase in assets and decrease in capital

Increase in one type of asset and a decrease in another type of asset

Section 1 of 4 : Double entry bookkeeping

How is a VAT inclusive credit sale of £3,600 entered into the organisation's accounting system? Note: VAT is charged at the rate of 20%. Select one answer. Select one answer.*

Debit: Sales £3,000, Debit: VAT £600, Credit: Receivables £3,600

Debit: Receivables £3,600, Credit: Sales £3,600, Credit: VAT £600

Debit: Bank £3,600, Credit: Sales £3,600

Debit: Receivables £3,600, Credit: Sales £3,000, Credit: VAT £600

Section 1 of 4 : Double entry bookkeeping

You have placed an order with a VAT registered supplier who has agreed a 3.5% trade discount and offered a 5% prompt payment discount. The net value of the goods is £1,400. If you take both discounts, how much will you pay the supplier? Note: VAT is charged at the rate of 20%. Select one answer.*

£1,540.14

£1,288.20

£1,365.00

£1,371.80

Section 1 of 4 : Double entry bookkeeping

Into which columns of an analysed cash book would you enter data when recording a BACS payment made to a VAT registered credit supplier? Select four answers.*

Date

Details

Bank

Cash

Purchases

Expenses

VAT

Payables

Section 1 of 4 : Double entry bookkeeping

What are the double entry postings required to transfer information from a sales returns day book to the general ledger? Select three answers.*

Debit: the individual customer accounts with the individual credit note totals

Credit: the individual customer accounts with the individual credit note totals

Debit: Sales returns with the total net amount

Credit: Sales returns with the total net amount

Debit: VAT with the total VAT amount

Credit: VAT with the total VAT amount

Debit: Receivables with the total gross amount

Credit: Receivables with the total gross amount

Section 2 of 4 : Bookkeeping controls

Which of the following figures would you expect to see on the debit side of a receivables control account? Select two answers.*

Balance c/d

Balance b/d

Gross total from the Sales Returns Day Book

Gross total from the Sales Day Book

Value of receipts from credit customer

Gross total from the Discounts Allowed Day Book

VAT inclusive value of irrecoverable debts

Section 2 of 4 : Bookkeeping controls

If the balance on an organisation's Payables Ledger Control account is £21,400 and the total of the balances in the payables subsidiary ledger is £21,100, what could account for the difference? Select one answer.*

A credit note has not been entered into the Payables account

The value of discounts received was omitted from the Payables account

An invoice has not been entered into a supplier's account in the subsidiary ledger

A credit note has not been entered into a supplier's account in the subsidiary ledger

Section 2 of 4 : Bookkeeping controls

If the bank statement shows an overdrawn balance of £40, and the cash book has a brought down debit balance of £70, what could account for the difference? Select one answer.*

A receipt of £30 which has been recorded in the cash book and paid into the bank, but does not appear on the bank statement

An unpresented cheque of £110 which has been recorded in the cash book and paid into the bank, but does not appear on the bank statement

A receipt of £110 which has been recorded in the cash book and paid into the bank, but does not appear on the bank statement

Bank charges of £30 which have been recorded on the bank statement, but not in the cash book

An unpresented cheque of £30 which has been recorded in the cash book and paid into the bank, but does not appear on the bank statement

Section 2 of 4 : Bookkeeping controls

What are the postings required to write off an irrecoverable debt of £3,745 including VAT? Select both the double entry and memorandum postings. Note: VAT is charged at the rate of 20%. Select four answers.*

Debit: Irrecoverable debts £3,121

Credit: Irrecoverable debts £3,000

Debit: VAT £624

Credit: VAT £590

Debit: Receivables £3,745

Credit: Receivables £3,745

Debit: the individual customer account £3,745

Credit: the individual customer account £3,745

Debit: the individual customer account £3,121

Credit: the individual customer account £3,121

Section 2 of 4 : Bookkeeping controls

If an organisation has created a suspense account with a credit balance of £2,100, which of the following errors could have caused the suspense account and will therefore clear it, once corrected? Select one answer.*

The payment of £2,100 for office supplies has been entered correctly into the cash book, but posted as a debit to the discounts received account.

The payment of £1,050 for office supplies has been entered correctly into the cash book, but posted as a credit to the sales account.

The receipt for an insurance refund of £1,050 has been correctly entered into the cash book, but posted as a debit to the insurance expense account.

The receipt for an insurance refund of £2,100 has been correctly entered into the cash book, but posted as a debit to the insurance expense account.

The payment of £2,100 for travel expenses has been entered correctly into the cash book, but posted to the debit of the motor vehicles at cost account.

Section 2 of 4 : Bookkeeping controls

An organisation's trial balance does not balance at the end of a period. Which types of error could have caused the imbalance? Select three answers.*

A reversal of debit and credit entries when posting a transaction

An error in the amount posted to one account relating to a transaction - so the debit and credit entries are for different amounts

An error in the amounts posted to all accounts relating to a transaction - so the total debits and total credit entries equal

An arithmetical error when balancing an account

An arithmetical error when totalling the trial balance

Section 3 of 4 : Costing

A manufacturing organisation's electricity cost, for its administration department, includes a cost per unit of energy used, as well as a standing charge. How can this cost be classified in terms of its element, nature and behaviour? Select three answers.*

Materials

Labour

Overheads

Direct

Indirect

Fixed

Variable

Semi-variable

Stepped

Section 3 of 4 : Costing

An organisation pays its employees a basic wage of £13.50 per hour for all hours worked, including any overtime hours. Employees are expected to produce 20 units per hour and are paid a bonus of £0.75 per unit for any units produced within the standard 37-hour week, in excess of the required amount. Overtime is paid with an additional premium of £4.00 per hour on top of the basic hourly rate for any hours worked in excess of the standard 37 hours. If an employee works 42 hours and produces 880 units in total, with 780 units being produced in the standard hours, how much will they be paid? Select one answer.*

Basic wage of £567, plus a bonus of £30 and overtime premium of £25 equals gross pay £622

Basic wage of £499.50, plus a bonus of £15 and overtime premium of £20 equals gross pay £534.50

Basic wage of £499.50, plus a bonus of £30 and overtime premium of £20 equals gross pay £549.50

Basic wage of £567, plus a bonus of £30 and overtime premium of £20 equals gross pay £617

Section 3 of 4 : Costing

3. An organisation uses AVCO to cost issues of inventory. The opening balance consisted of 350 units valued at £420. At the start of the period, 115 units were purchased for £1.30 per unit, before 250 units were issued to production. What is the value of the closing inventory? Select one answer.*

£260.20

£263.32

£265.55

Section 3 of 4 : Costing

Which of the following statements are true in relation to the way total and unit costs change as levels of output vary? Select three answers.*

Variable costs per unit will stay the same at different levels of output

Variable costs per unit will change at different levels of output

Fixed costs per unit will stay the same at different levels of output

Fixed costs per unit will change at different levels of output

The total cost per unit will stay the same at different levels of output as it is likely to be a combination of fixed, variable, semi-variable, and/or stepped costs

The total cost per unit will change at different levels of output as it is likely to be a combination of fixed, variable, semi-variable, and/or stepped costs

Section 3 of 4 : Costing

5. An organisation's budget predicted a profit of £33,678. The actual profit generated was £32,457. How much is the variance as a percentage of the budgeted figure, and is it adverse or favourable? Select one answer.*

3.63% favourable

4.15% favourable

3.63% adverse

4.15% adverse

Section 4 of 4 : Business Environment

An organisation that rents properties regularly places adverts online when they are looking for new tenants. What do the adverts represent in relation to a contract? Select one answer.*

An invitation to treat

An offer

Acceptance

Consideration

Section 4 of 4 : Business Environment

Which of the following are required in order to set up a limited company? Select six answers.*

A company name and address

Details of at least one shareholder and one director

Articles of Association

Registration with Companies House

At least 15 employees

A memorandum of association showing details of the company's shares

A minimum of £5,000 of issued share capital

A certification of incorporation

A written guarantee from shareholders against company debts

Section 4 of 4 : Business Environment

Ethically, to whom does an accountant have a duty? Select one answer.*

Accounting technicians have a duty to their employer

Accounting technicians have a duty to their clients and employer

Accounting technicians have a public interest duty to society as well as to their clients and employer

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Boost Your Career With An AAT Qualification

AAT Skillcheck

Interested in starting your AAT journey but unsure where to start?

AAT Skillcheck will give you guidance on the best AAT qualification for you, based on your skills, knowledge and experience.

Section 1 of 4 : Double entry bookkeeping

Section 1 of 4 : Double entry bookkeeping

Section 1 of 4 : Double entry bookkeeping

Section 1 of 4 : Double entry bookkeeping

Section 1 of 4 : Double entry bookkeeping

Section 1 of 4 : Double entry bookkeeping

Section 2 of 4 : Bookkeeping controls

Section 2 of 4 : Bookkeeping controls

Section 2 of 4 : Bookkeeping controls

Section 2 of 4 : Bookkeeping controls

Section 2 of 4 : Bookkeeping controls

Section 2 of 4 : Bookkeeping controls

Section 3 of 4 : Costing

Section 3 of 4 : Costing

Section 3 of 4 : Costing

Section 3 of 4 : Costing

Section 3 of 4 : Costing

Section 4 of 4 : Business Environment

Section 4 of 4 : Business Environment

Section 4 of 4 : Business Environment

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