Business Document

Question 1

E and OE

Answer 1

Errors and omissions excepted

Question 2

CWO

Answer 2

Cash with order

Question 3

COD

Answer 3

Cash on delivery

Question 4

Businss Documents

Answer 4

1. Letter of Enquiry
2. Quotation
3. Order
4. Invoice
5. Delivery note (docket)
6. Credit Note
7. Debit Note
8. Statement of Account
9. Recepit

Question 5

Letter of Enqury

Answer 5

A letter (or email) of enquiry is sent by the buyer to the seller asking about particular items and their terms of sale.

Terms of sale are the conditions attached to the sale of a product.

Question 6

Quotation

Answer 6

A quotation is a written document that is sent by a seller to a potential buyer and shows the price of the goods and any terms of sale.

Question 7

Order

Answer 7

An order is a written document sent by a buyer to a seller requesting the supply of the quantity of goods listed

Question 8

Delivery

Answer 8

If the quotation says ‘Carriage paid; the seller of the goods will cover the cost of delivering the goods to the buyer. Otherwise, they will give a cost for postage or a courier

Question 9

Price held:

Answer 9

The prices quoted might be valid for only a limited time. This encourages the customer to order quickly

Question 10

Trade discount

Answer 10

This is a reduction of the selling price given to business customers. It is subtracted before the VAT is added on.

Question 11

Cash discount

Answer 11

An extra discount may be given if the goods are paid for in a short period of time. For example, cash discount 5% for fourteen days. Sellers offer this extra incentive to encourage quick payment by buyers

Question 12

Payment Terms

Answer 12

This is where details of the credit and payment terms are given, e.g a buyer may have up to thirty days to pay for the goods.

Question 13

Order

Answer 13

An order is a written document sent by a buyer to a seller requesting the supply of the quantity of goods listed

Question 14

Invoice

Answer 14

The invoice is a document sent by the seller to the buyer with the goods or shortly after the delivery of them.
It gives details of the quantity, price of the goods being sent, terms of sale and details about carriage.

Question 15

Delivery Note (Docket)

Answer 15

The delivery note is a document sent by the seller to the buyer that lists the items being delivered.

Question 16

Credit Note

Answer 16

A credit note is a document that is sent by the seller to the buyer to decrease the amount owed by them.
It is issued when goods that have been purchased on credit are returned to the seller and it would not be appropriate to provide a cash refund.

Question 17

Debit Note

Answer 17

A debit note is sent by the seller to the buyer and will increase the amount owed by them.
It is used when there has been an undercharge on an account.

Question 18

Statement of Account

Answer 18

A statement of account is sent by the seller to the buyer and is a summary of all the transactions between the two firms over a particular period of time.
It shows the full amount owed and will act as a request for any payment still owed at the end of the month.

Question 19

Receipt

Answer 19

A receipt is a written document stating that the goods have been paid for.
It is signed by the seller and given to the buyer.