Documentation and Double Entry Flashcards
What is a cash transaction?
Where goods or services are paid for in cash, direct debit, standing order, debit/credit card or by cheque.
What is a credit transaction?
Where payment is made some time after delivery.
What is a trade discount?
A discount given by one trader to another.
What is a cash discount?
A reduction in the amount that the customer has to pay, provided payment is made within a given period.
What is an invoice?
A document which is sent by the seller, to inform the buyer how much is owed for goods supplied.
What is a debit note?
A document sent by the seller to the buyer if they’ve undercharged the buyer in the invoice.
What is a credit note?
Sent by the seller to the buyer, when the buyer returns goods. Acts as a confirmation. Or if the seller has overcharged the buyer on the invoice.
What is the statement?
A document showing a list of invoices, debit notes and credit notes that the seller has sent to the buyer.
