Business Documents

Question 1

Invoice

Answer 1

Document issued by the supplier of goods on credit showing details, quantities and prices of good prices

Question 2

Contents of an Invoice

Answer 2

• the name and address of the supplier
• the name and address of the customer
• the date
• full details, quantities, and prices of the goods supplied

Question 3

Trade discount

Answer 3

A reduction in the price of goods (deduction on the invoice)

Question 4

Cash discount

Answer 4

A deduction from an invoice if the invoice is paid within a set time limit

Question 5

Debit note

Answer 5

A document issued by a purchaser of goods on credit to request a reduction in the invoice receieved

Question 6

Contents of a debit note

Answer 6

• the name and address of the supplier
• the name and address of the customer
• the date
• full details and quantities

Question 7

Contents of a debit note

Answer 7

• the name and address of the supplier
• the name and address of the customer
• the date
• full details and quantities

Question 8

Contents of a debit note

Answer 8

• the name and address of the supplier
• the name and address of the customer
• the date
• full details and quantities

Question 9

Credit note

Answer 9

A document issued by a seller of goods on credit to notify of a reduction in an invoice previously issued

Question 10

Contents of a credit note

Answer 10

• the name and address of the supplier
• the name and address of the customer
• the date
• full details, quantities, and prices of the goods returned or overcharged

Question 11

Statement of account

Answer 11

A document issued by the seller of goods on credit to summarize the transactions for the month

Question 12

Contents of a statement of account

Answer 12

• the name and address of the supplier
• the name and address of the customer
• the date
• the balance owing at the start of the period
• invoices and credit notes issued
• payments received
• any cash discounts allowed
• the balance owing at the end of the period.

Question 13

Cheque

Answer 13

A written order to a bank to pay a stated sum of money to the person or business named on the order

Question 14

Receipt

Answer 14

A written acknowledgement of money received and acts as a proof of payment