Documentation and Double Entry Flashcards

1
Q

What is a cash transaction?

A

Where goods or services are paid for in cash, direct debit, standing order, debit/credit card or by cheque.

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2
Q

What is a credit transaction?

A

Where payment is made some time after delivery.

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3
Q

What is a trade discount?

A

A discount given by one trader to another.

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4
Q

What is a cash discount?

A

A reduction in the amount that the customer has to pay, provided payment is made within a given period.

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5
Q

What is an invoice?

A

A document which is sent by the seller, to inform the buyer how much is owed for goods supplied.

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6
Q

What is a debit note?

A

A document sent by the seller to the buyer if they’ve undercharged the buyer in the invoice.

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7
Q

What is a credit note?

A

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.

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8
Q

What is the statement?

A

A document showing a list of invoices, debit notes and credit notes that the seller has sent to the buyer.

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