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| Question | Answer |
| What is the definition of SOLE TRADER? | A sole trader is a business type owned by one person. That one person provides capital to set-up the business, they claim all the profit made by the business and they are charged with the loss if any are made. |
| What form of LIABILITY does a sole trader have? | A sole trader has unlimited liability and legally there is no difference between the business wealth and private wealth of the owner. |
| How do sole traders get paid? | Sole traders are sometimes referred to as "self-employed", however, they do not take a wage from their business. Instead, they take "drawings" from the business. |
| What is BOOKKEEPING? | Bookkeeping is the routine by which day-to-day business transactions are systematically recorded in a business's books of account. |
| What does a T LEDGER look like? | |
| How does the DATA PROTECTION ACT 1998 affect a bookkeeper? | The Data Protection Act 1998 requires that data must be kept safe and secure with appropriate measures taken to protect information from unauthorised access. |
| Complete this sentence: The term ________ is used to describe a business owned by one person. | Sole Trader. |
| Complete this sentence: Sole traders have _______. This means that should the business fail their personal wealth, as well as the amount they have invested in the business as capital, is at risk. | Unlimited Liability. |
| Complete this sentence: The income tax and national contributions paid by sole traders is based on the _______ their business makes. | Profit. |
| True or False: In the interests of security, the door of the accounts office should be kept locked when the office is unoccupied. | True. |
| True or False: Personal data stored by a business must be kept under sage and secure conditions, with appropriate measures taken to protect the data from unauthorised access. | True. |
| True or False: Any documents, files or accounts on which you are working should be left on your desk when you leave the office each evening, so that they are easily accessible and can be found by a colleague next day if for some reason you cannot get into work. | False. |
| Complete the sentence: A bookkeeping system in which transaction are recorded by making an entry on the left-hand side of an account, with a corresponding entry also being made on the right-hand side of another account is known as the _________ system of bookkeeping. | Double Entry. |
| Complete the sentence: A trader takes some money from the shop's cash register at the end of each week for personal use. This is known as _________. | Drawings. |
| Complete the sentence: In a double entry bookkeeping system accounts are kept in a book known as a _________. | Ledger. |
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