Chapter 4

Question 1

This is used for external purposes-these are the business’ sales invoice, cash sales invoice, charge invoice official receipt provisional receipt, etc.

Answer 1

business document

Question 2

The Bureau of Internal Revenue controls these documents.

Answer 2

business document

Question 3

The person who makes the printed copy of these documents is usually responsible for their registration to the BIR.

Answer 3

business document

Question 4

This is necessary because this is one of the control measures adopted by our government to monitor and impose taxes to those who are doing business in our country.

Answer 4

business document

Question 5

Failure to register business documents with the BIR has due penalty as per?

Answer 5

the tax code.

Question 6

They are issued to parties who are transacting with business enterprises.

Answer 6

business document

Question 7

This are used for internal purpose and they do not need to be registered with the BIR.

Answer 7

Business forms

Question 8

They are used for the purpose of consistency.

Answer 8

Business forms

Question 9

Examples of these forms are the payroll forms, journal voucher cash receipt voucher, check voucher, sales report form, purchase order, canvass sheet, requisition form, receiving report, warehouse issue slips, etc.

Answer 9

Business forms

Question 10

Their purpose is for the company to establish a good internal control of all their business activities.

Answer 10

Business documents and Business forms

Question 11

Aside from the presentation, the BIR also requires (what) and (what) of the essential information that should be found in the document.

Answer 11

Accuracy and completeness

Question 12

Sales invoice is sometimes called?

Answer 12

cash sales invoice,
charge invoice, or
service invoice.

Question 13

It documents the services rendered or the commodities sold by the customer.

Answer 13

Sales invoice

Question 14

Like the official receipt, all information can be located at the option of the designing accountant.

Answer 14

Sales invoice

Question 15

Other information can also be incorporated in the invoice depending on the need the business enterprise.

Answer 15

Sales invoice

Question 16

A receipt that is similar to the official receipt.

Answer 16

Provisional receipt

Question 17

The difference between provisional and official receipt.

Answer 17

The only difference is that the collectors issue the document upon arriving at the office and endorse the collection to the company cashier, who will then acknowledge it by issuing an official receipt.

Question 18

Also, some companies use provisional receipt if the payment made by the customer is in a form of

Answer 18

check

Question 19

When the check collection is deposited and cleared with the bank, an official receipt will be issued. True or False?

Answer 19

True

Question 20

The provisional receipt is considered as temporary receipt and therefore, cannot be considered as a good evidence to be kept. True or False?

Answer 20

True

Question 21

What are the 6 components of official receipt?

Answer 21

1. The name of the business enterprise, the address, and the proprietor (if single proprietorship)
2. The Tax Identification Number (TIN).
3. The amount.
4. The form of payment.
5. The signature of the authorized person to accept collection.
6. The control number.

Question 22

Usually placed below the name, address, and proprietorship.

Answer 22

Tax Identification Number (TIN).

Question 23

Must be written in words and in figures and the information, which will indicate the nature of the payment, the nature of payment is very important for the posting purpose in the subsidiary ledger.

Answer 23

Amount

Question 24

If the collection is made in cash,

Answer 24

then the same amount must be seen as deposit in the bank as cash deposit.

Question 25

If it is a check collection,

Answer 25

the same must be seen as deposit in bank as check deposit. If the check is returned for insufficient fund then, it is easy to check and trace.

Question 26

This is also very important because the company will not honor unauthorized signature.

Answer 26

Signature of the authorized person to accept collection.

Question 27

Can be written anywhere within the document.

Answer 27

control number

Question 28

The form where the company journalizes its transactions.

Answer 28

journal voucher

Question 29

If it is a cash receipt transaction,

Answer 29

use the cash receipt voucher;

Question 30

if it is a payment transaction,

Answer 30

use the cash payment voucher,

Question 31

if it relates to other than receipt or payment,

Answer 31

use the journal voucher.

Question 32

Examples of business documents

Answer 32

are the business’ sales invoice, provisional receipt, official receipt, among others.