3.2 The Purpose Of Interpretation Of Other Business Documents Flashcards
What is meant by bank statement ?
This summarises the inflows and outflows of a bank account in usually over a period of a month.
This allows for businesses to be aware of any available funds which can be used to cover expenses
What is meant by budget variance report ?
Shows differences between what was the budgeted income and expenditures and the actual income and expenditure.
Budget, planned income and expenditures over a period of time.
Favourable variance, where figures is better then budgeted, e.g costs are lower
Adverse variance, where figures is worse then budgeted e.g costs are higher
What is meant by delivery note ?
This document will tell you the items ordered. Includes quantity of what has been sent out. Customer will sign delivery note for com formation and can be used later for a invoice payment.
What is meant by goods received note ?
Document which tells you that you have received your items and tells you how much you have ordered. Once checked it’s sent to the accounts department who will check it with a invoice.
What is meant by payslips?
This is an employees records of the pay they’ve received.
Deduction of
Income tax
National insurance
Pension contribution
Student loan repayments
What is meant by receipt ?
This Will give evidence of purchasing goods and services. Also contains dates of purchase.
What is meant by remittance advice ?
Notification from customer to supplier to let them know an invoice has been paid. Traditionally will be sent with a cheque.
What is meant by request repair form ?
Can be internal document which is sent to the maintenance department for internal repairs. Can also be for external documents aswell.
