Business Documentation

Question 1

Name 3 business entities?

Answer 1

Sole trader
Partnership
Limited liability company

Question 2

What is a cash sale, how is it paid, what is the business documentation that you receive?

Answer 2

A cash sale is when the sale and the payment are made at the same time.
It is paid by cash, cheque or credit card.
The documentation is a Till receipt.

Question 3

What is a credit sale, how is it paid, what is the business documentation that you receive?

Answer 3

A credit sale is when the seller provides the goods or services by payment is made at a later date.
The seller provides an invoice but can pay with cash, cheque or card.
Business documentation is the invoice

Question 4

What are the six stages of the sales?

Answer 4

1. Quotation is requested for goods/services.
2. Order is placed.
   3.Goods are dispatched
3. Payment is requested
4. Goods may be returned to vendor
5. Payment

Question 5

Which document is produced at each of the six stages of sales?

Answer 5

1. Quotation/ Price list
2. Customer Order
3. Delivery note
4. Invoice
5. Credit note
6. Remittance advice note

Question 6

Name some errors which could appear in any financial documents?

Answer 6

Incorrect product codes
Incorrect price per unit
Incorrect quantities
Incorrect discounts and VAT

Question 7

What 3 things should a quotation contain?

Answer 7

The goods or services to be applied
The price
Any terms or conditions, including any discounts

Question 8

What business documentation will accompany when the goods are delivered?

Answer 8

Delivery note

Question 9

What is a credit note?

Answer 9

If the customer receives faulty items or the incorrect one the goods will be returned. If the invoice has already been issued then it will be necessary to raise a credit note. It shows that the customer owes less than the invoice.

Question 10

What is a remittance advice note?

Answer 10

A document sent to let the supplier know which invoices are being paid and which credit notes are being deducted.
Going from buyer to supplier.

Question 11

What is an invoice?

Answer 11

Used in credit transactions.
Shows how much is owed by the customer, must be paid within certain amount of days.

Question 12

What is petty cash?

Answer 12

Small amounts of cash held within a business to pay for small expenses such as: Stationary

Question 13

Why is coding used on business documentation?

Answer 13

So information can be recorded accurately and in a timely manner.
Documents can be filled and retrieved efficiently.

Question 14

Name different types of Coding?

Answer 14

Numerical
Alphabetical
Alphanumerical

Question 15

What is the documentation which is used to record payments of petty cash?

Answer 15

Petty Cash Voucher