Business documents and source documents Flashcards
What is a cash sale?
When the payment for the 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 sent to a customer to inform them of the amount owed as a result of a credit sale.
What is a credit note?
A document sent to a customer to inform them of the reduction in the amount owed due to goods being returned.
What is a trade discount?
A discount given to loyal customers and applies to everything they buy.
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?
A record of a business transaction, typically related to buying and selling goods.
It may contain financial information.
What is a source document?
A business document that is used to provide financial information that is used to update the accounts.
What are examples of business documents?
Purchase orders
Delivery note
Goods received note
Statement of account
Remittance note
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 book that the business keeps that is a record of a cheque payment made.
What is a trade payable?
An amount owed to a supplier, relating to credit purchases of goods bought for re-sale.
What is a cash purchase?
When the business buys goods for re-sale.
