Business documents and source documents Flashcards
What is a cash sale?
When the payment for goods is made immediately.
What can payments be made using?
Cash
Debit card
Credit card
What is a credit sale?
When the payment is made at a later date.
What is an invoice?
A document that lists the items or services sold and the amount the buyer needs to pay.
What is a credit note?
A document that reduces the amount a buyer owes, usually because of an error or returned goods.
What is a trade discount?
A price reduction given to customers, often for buying in large quantities.
What is a cash discount?
A discount given for early payment.
What is a trade receivable?
The amount of money owed by a customer to the business as a result of a credit sale.
What is a business document?
Any written record used in a business to communicate information
What is a source document?
An original record that provides proof of a business transaction.
What is a bank paying in slip?
A document used when the business pays money into their bank account.
What is a cheque counterfoil?
The part of a cheque that is kept as a record of the payment details.
What is a trade payable?
The money a business owes to its suppliers for credit purchases.
What is a cash purchase?
When the business buys goods for resale and pays immediately.
What is a credit purchase?
When a business buys goods for resale and pays at a later date.
