Bookkeeping transactions CH1 Business Documentation Flashcards
What are the three types of Business Entities?
- Sole trader
- Partnership
- Limited liability company (PLC / LTD)
What is produced for each business transaction?
Business Documentation
What are the two types of sales?
- Cash (Payment is received instantly, when they get the product)
- Credit (Payment is received after the customer has received the product/service)
What is a quotation?
Business documentation sent to potential customers detailing the good / service, price and terms & conditions of the sale.
What is an order document?
A document produced by a customer when they wish to make an order
What is a delivery note?
A document that is signed by the customer when they have received the product
What is an invoice?
A document used in a credit transaction that is sent to the customer to show how much is owed and when it should be paid.
What is a credit note?
A document that shows less is owed than what was originally invoiced
What is a remittance advice note?
Helps the business understand what invoices are being payed for when a customer pays.
What is a petty cash voucher used for?
Record payments of petty cash
What is coding used for?
To ensure accuracy of recording and filing.
