Chap 7

Question 1

are used to document
business transactions

Answer 1

Business Forms

Question 2

The contents of the form give the
reader an understanding of the various
aspects of the transactions such as:

Answer 2

(1) quality and quantity
of merchandise requested, ordered,
or delivered;
(2) price agreed upon for the
merchandise;
(3) The person who prepared the form
and;
(4) officers who authorized the
transaction.

Question 3

These are used only within the company
These forms may be used on the side of the seller only or the buyer only
These documents the accountability of the personnel on the transactions that occur

Answer 3

INTERNAL BUSINESS FORMS

Question 4

is an internal report prepared by the buyer’s personnel in charge of receiving
deliveries.

Answer 4

Receiving Reports (RR)

Question 5

It is used to document the quality and quantity of items received by the personnel from the suppliers

Answer 5

Receiving Reports (RR)

Question 6

Most companies process
payments through

Answer 6

a voucher system

Question 7

Payments are made by

Answer 7

Checks

Question 8

A __________is prepared for each check.

Answer 8

Check Voucher (CV)

Question 9

It documents the process for
the preparation, verification,
and authorization of check
payments.

Answer 9

Check Voucher

Question 10

The check voucher package
includes the ________ and ________________________

Answer 10

CV and the
supporting documents such
as the supplier’s bill invoice, or
statement of account.

Question 11

also pre-numbered and should be used
sequentially

Answer 11

Check Voucher

Question 12

–are used by both the buyer and the seller or inside and outside the
company
Are filled out by both parties
These forms evidenced the occurrence of a stage of the transaction.

Answer 12

External business forms

Question 13

Below are some of the business forms for discussions:

Answer 13

1. Purchase order
2. Delivery Receipt
3. Sales Invoice
4. Provisional Receipt
5. Official Receipt
6. Bills and Statement of Account

Question 14

is a form used by the buyer to communicate his
exact orders to the seller.

Answer 14

Purchase Order (PO)

Question 15

The quality specifications and quantity ordered is
indicated on _________

Answer 15

the form

Question 16

A valid PO issued by the buyer is approved by

Answer 16

the appropriate office

Question 17

the _______is required to accept the delivery of the
ordered merchandise as long as it meets the
specifications on the PO.

Answer 17

Buyer

Question 18

The _________ of the PO signifies his
commitment to making delivery within the _____________

Answer 18

Seller, Specified Period

Question 19

is evidence of delivery,
issued by the seller

The form indicates information on the quality
and quantity of items delivered.

Answer 19

Delivery Receipt (DR)

Question 20

The DR is signed by __________to indicate that
the quantity of the items listed had been

Answer 20

buyer, received

Question 21

One copy signed by the buyer is taken back to
the seller’s accounting department. One copy is given back to

Answer 21

the buyer

Question 22

is a communication from the seller to the buyer.

Answer 22

Sales Invoice

Question 23

It documents the amount of payment that the
seller is claiming

Answer 23

Sales Invoice

Question 24

What is BIR

Answer 24

Bureau of internal revenue

Question 25

The (BIR)-approved sales
invoice format includes a breakdown of

Answer 25

VAT computation

Question 26

is computed based on the VAT-inclusive
selling price, referred to as gross price, divided by
1.12.

Answer 26

Net Sales

Question 27

VAT is ______________or sales exclusive of VAT, multiplied by _____

Answer 27

Net sales, 12%

Question 28

1. are evidence of payment. Therefore, a buyer who
   claims that an account has been settled must be able
   to show an official receipt.
2. The BIR has an approved format of the OR
3. A check payment does not constitute the final
   settlement of accounts until the buyer’s bank
   honors the check

Answer 28

Official Receipt

Question 29

1. Some sellers choose to initially issue a ______________ pending clearance of the check issued as
   payment.
2. The seller will issue the OR when the check has been
   cleared by the bank.

Answer 29

Provisional Receipt

Question 30

is prepared by the seller and
submitted to the buyer

Answer 30

Statement of Account or Billing Statement

Question 31

this statement lists down the seller’s transactions
with the buyer over a specific period, normally one
month.

Answer 31

Billing Statement

Question 32

In a billing statement the seller is basically telling the buyer
a) their sales transactions are identified by sales
invoices and
b) payments they received are identified by the
official receipts.

The BIR also has an approved format for the
Statement of Account

Answer 32

hindi i2 question

Question 33

this is a reminder to the
buyer of the amount he owes to the seller.

Answer 33

Billing statement

Question 34

FLOW OF BUSINESS FORMS: PURCHASE REQUEST TO THE DELIVERY
RECEIPT—-BUYER

Answer 34

Quotations - Receives quotations from potential suppliers
PR - Prepares the Purchase Request (PR) based on quotations received
PO - Prepares Purchase Order (PO) based on the approved PR
A-PO —-Sends approved PO to supplier—–A-PO

Question 35

FLOW OF BUSINESS FORMS: PURCHASE REQUEST TO THE DELIVERY
RECEIPT—-SELLER

Answer 35

A-PO -Receives PO from buyer

DR - Prepares the Delivery Receipt (DR) based on PO

DR —Delivers merchandise with DR to buyer —-Merchandise

DR -Receives signed DR from the buyer