Business Documents Flashcards
What are Business Documents?
Forms, transaction records and legal papers used in business that are used to keep official records of all transactions in a business
Four reasons why keeping good records is important are:
- Identifies the business’ strengths and weaknesses to allow for effective strategies to be made to increase the profits
- Helps plan to meet the financial commitments
- Makes it easier to get a loan or sell your business
- Avoids over/under tax payments
A Catalogue is a document that…
Gives detailed descriptions of products
What is a Letter of Inquiry?
A letter sent to the supplier by a purchaser who is inquiring about the goods and requests a quotation.
What is a Quotation?
A document that provides details of a product or service requested by a prospective purchaser.
A Purchase Requisition is an…
Internal business document used by departments to request materials from each other or to advise one another to purchase a material for themselves
Define what an ‘Invoice’ is.
An invoice is a bill from the supplier to the buyer after the goods have been sent
Define what ‘Pro forma invoices’ are.
They are given before the invoice stating the quantity , unit cost and total along with the description of the commodity.
A Credit Note is used to…
Adjust the accounts and reduce the amount owed by a customer due to an overcharge or damaged goods
A Debit Note is used to…
Adjust the accounts and increase the amount owed by the customer due to a sum being omitted in the invoice
What is Delivery Note?
A written document from supplier to customer that gives details of the quantity and type of goods.
A Tender is an…
Offer of a price for acceptance
Define what a ‘Statement of Account’ is.
The document from supplier to purchaser that gives a summary and balance of the purchasing debtor’s transactions with the supplier overtime.
What is a Stock or Inventory Card?
A stock or Inventory control document that lists the available quantity of a product that must be updated when deliveries arrive and when items are used from stock.
