B.1 Financial documents

Question 1

identify all types of financial document

Answer 1

invoice
delivery note
purchase orders
credit notes
receipts
statement of account

Question 2

what is the process of a purchase order

Answer 2

purchase order > delivery note > invoice > receipt > credit note >statement of account

Question 3

to ensure that a business cutomers & suppliers have an accurate record of all trading that has taken place

Answer 3

purpose of using financial document

Question 4

purpose of using financial document

Answer 4

• to aid managment decisions
• to calculate costs revenues profit or loss
• to track that goods have been returnes
• to ceck that invoices have been paid to chase any - - that are outstanding
• to provide information for financial statements
• to determine how much tax i owed by the enterprise

Question 5

why is it important for an enterprise to keep accurate financial records

Answer 5

• to check that customers receive the right goods on the right quantities
• check that customers are not being overcharged or undercharged
• to ensure calculations of cost and revenues are accurate

Question 6

why might a bank be interested in statement of financial position

Answer 6

so the bank can see if the enterprise has enough money to pay back supplies and if the enterprise is suitable for overdraft or loans

Question 7

purchase order

Answer 7

• when a buyer oders good or services from a seller
  / list types,quantities and agreed prices

Question 8

delivery note

Answer 8

• when goods are delivered to the buyer
  /explain contents of the package
  anything ordered thats not in the package

Question 9

goods received note

Answer 9

• when goods are received
  /confirms all goods have been received
  can be compared against a purchase orde

Question 10

invoice

Answer 10

• details the money usually after goods have been received
  /entails date by which money must be paid
  explains how to pay

Question 11

what is a credit note for ?

Answer 11

• if a customer returns goods to the seller
  /acts as a record that goods have been returnedand customer has receivved a refund

Question 12

statement of account

Answer 12

• a summary of recent transactions between company and customerincluding the total of any outstanding invoices
  /used with customers who regularly purchase good