business documents

Question 1

TRANSACTION DOCUMENTS

Answer 1

to the buying and selling of goods and services between businesses who are acting as customers and suppliers

Question 2

PURCHASE ORDER

Answer 2

completed by a customer when requesting goods that it wants to buy from a supplier. It lists the goods that the customer has ordered and the agreed prices

Question 3

INVOICE

Answer 3

completed by the supplier and sent to the customer, requesting payment. It lists the goods and services that have been sold, the total owed for those goods and services and when payment is due.

Question 4

CREDIT NOTE

Answer 4

completed by a supplier if goods have been returned by a customer because they are damaged in transit or incorrectly supplied.

Question 5

STATEMENT OF ACCOUNT

Answer 5

completed by a supplier and sent to a customer showing how much the customer owes the supplier at the end of the month. It shows details of invoices, credit notes, payments and discounts that have taken place during the month.

Question 6

E&OE

Answer 6

(‘Errors and Omissions Excepted’) means that the supplier is avoiding any legal liability for any administrative errors or inaccuracies.

Question 7

T&C

Answer 7

(‘Terms and Conditions’) refer to delivery charges, delivery arrangements or payment terms.

Question 8

COD

Answer 8

(‘Cash on Delivery’) means that goods must be paid for when they are delivered.

Question 9

TERMS 30 DAYS

Answer 9

the date by which payment is expected.

Question 10

EMPLOYEE DOCUMENTS

Answer 10

completed by workers of a business.

Question 11

TRAVEL EXPENSE CLAIM FORM

Answer 11

completed by an employee to reclaim the costs of travelling for work purposes (although not the day-to-day travel from home to the usual place of work). It includes mileage (if the employee has driven their car) and cost calculations.

Question 12

Internal

Answer 12

that they are used within the business.

Question 13

PETTY CASH VOUCHER

Answer 13

used to reimburse staff for small purchases made on behalf of the business.

Question 14

STOCK REQUISITION FORM

Answer 14

used inform the purchasing department that goods need to be ordered from a supplier.

Question 15

IT REQUISITION FORM

Answer 15

a request for IT equipment to be purchased. As with the stock requisition form, this is completed by the employee requesting the equipment and forwarded to the purchasing department.

Question 16

REPROGRAPHICS REQUISITION FORM

Answer 16

completed by an employee requiring photocopies or other services such as laminating, or booklets being produced.

Question 17

BANK STATEMENT

Answer 17

sent by the bank to its customers and shows amounts that have been received, amounts that have been paid, and the balance on the bank account after each receipt or payment.

Question 18

BUDGET VARIANCE REPORT

Answer 18

the difference between budgeted figures and actual figures.

Question 19

Budget

Answer 19

an amount of money allocated to a person or department to spend.

Question 20

Variance

Answer 20

the difference between the budget and the amount that is actually spent.

Question 21

Favourable variance

Answer 21

that the amount actually spent is less than the budget.

Question 22

Adverse variance

Answer 22

that the amount actually spent is more than the budget.

Question 23

Absolute difference

Answer 23

The difference between the budget and the amount actually spent.

Question 24

• Percentage difference

Answer 24

Absolute difference ÷ Budget x 100.