chapter 10: statement of account

Question 1

explain the use of a statement of account

Answer 1

• to show the amount owing by the customer/ how much is due
• to show how much credit is available to the customer at the end of the month
• to allow the customer to compare with their records to assure no errors are made
• to remind customers to pay their debts

Question 2

define statement of account

Answer 2

business document containing the summaries of the transactions of each debtor during the month