* not completed

. What is the correct double entry to record sales day book totals in an entity's books of account?

Debit Trade receivables or cash, Credit sales correct incorrect

Debit Sales, Credit trade receivables or cash correct incorrect

Debit Trade receivables or cash, Credit sales, Credit VAT correct incorrect

Debit Sales, Debit VAT, Credit Trade receivables or cash correct incorrect

* not completed

. Which one of the following statements is not true?

Trade receivables are an asset correct incorrect

VAT represents income correct incorrect

Cash received from cash sales is an asset correct incorrect

Sales represent income correct incorrect

* not completed

. The total column of the sales day book for April stands at £108,000. This figure includes VAT at 20% of sales value. All sales are on credit terms. What is the correct double entry to record sales for April in the books of account?

Debit Trade receivables £108,000, Credit VAT £18,000, Credit sales £90,000 correct incorrect

Debit VAT £18,000, Credit sales £90,000, Credit trade receivables £108,000 correct incorrect

Debit Trade receivables £129,600, Credit VAT £21,600, Credit sales £108,000 correct incorrect

Debit Trade receivables £108,000, Credit VAT £21,600, Credit sales £86,400 correct incorrect

* not completed

. Which one of the following statements is true?

Trade receivables meet the definition of a liability correct incorrect

Income from sales meets the definition of an asset correct incorrect

VAT meets the definition of a liability correct incorrect

The sales day book is part of the double entry system correct incorrect