Business documents

Question 1

Which source documents are used when the cash is recieved by the business?

Answer 1

receipt and efts.

Question 2

which source documents are used when cash is paid by the business?

Answer 2

cheque butt, eft and atm

Question 3

which source document is used when a credit sale of inventory has been made (to acc rec)?

Answer 3

sales invoice (invoice numbers will be in numerical order)

Question 4

which source document is used when a credit purchase of inventory has been made (from acc pay)?

Answer 4

purchase invoice (invoice numbers will not be in numerical order

Question 5

how to know if a credit note is for a sales return or purchase return?

Answer 5

if our business name is at the top, it’s a sales return
if our suppliers name is at the top, it’s a purchase return

Question 6

what is a statement of account?

Answer 6

a statement of account is a summary of the transactions a business has had with a particular account payable or account receiveable over a certain period of time (usually a month).