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 entering opening balances in accounting software at the start of a new financial year, the balancing figure should be posted to:
Answer: The capital or retained earnings account
When entering opening balances, the difference between total debits and total credits represents the owner's capital or retained earnings brought forward. This is the balancing figure that ensures the accounting equation holds.
A credit note from a supplier should be entered in accounting software as:
Answer: A purchase credit note
A credit note received from a supplier reduces the amount owed to that supplier. It should be entered as a purchase credit note, which will debit the purchase ledger (reducing the payable) and credit purchases or the relevant expense account.
Which report from accounting software shows the financial position of the business at a specific date?
Answer: Statement of financial position (balance sheet)
The statement of financial position (balance sheet) shows the assets, liabilities, and capital of the business at a specific date. It is a snapshot of the financial position, unlike the profit or loss account which covers a period.
Bank receipts in accounting software are recorded by:
Answer: Using the bank receipts function and selecting the appropriate ledger account
Bank receipts (money received into the bank) should be entered through the bank receipts function. The user selects the bank account and the appropriate nominal code (e.g., trade receivables for customer payments, or a specific income account).
The aged payables report shows:
Answer: How much the business owes each supplier, analysed by age
The aged payables (aged creditors) report lists all amounts owed to suppliers, broken down by the length of time invoices have been outstanding (e.g., current, 30 days, 60 days, 90+ days). It helps manage cash flow and supplier payment schedules.
When a VAT return is run in accounting software, it calculates:
Answer: The difference between output VAT and input VAT for the return period
The VAT return calculates output VAT (collected on sales) minus input VAT (paid on purchases) for the VAT period. If output exceeds input, the business owes HMRC. If input exceeds output, the business can reclaim the difference from HMRC.