Chapter 4

Question 1

Copy of an invoice retained by a seller when a credit sale is made

Answer 1

Sales invoice

Question 2

Invoice received by a customer for a credit purchase made

Answer 2

Purchases invoice

Question 3

Given to customers for paying their debts promptly

Answer 3

Cash discount

Question 4

Given to customers who buy in bulk. A deduction on the list price

Answer 4

Trade discount

Question 5

Price at which the trade usually sells the product

Answer 5

List price

Question 6

Enables a business to order its bank to pay a certain set amount of money regularly at a stated date to an individual or an organisation

Answer 6

Standing order

Question 7

Small document that a person depositing money fills in with the date and amount of money being paid by them into their bank account

Answer 7

Paying-in slip

Question 8

Takes place when funds are transferred from one bank account to another by electronic means

Answer 8

Bank transfer