Documentation and Double Entry Flashcards
What is a cash transaction?
One where goods or services are paid for in cash, cheque or bank transfer when they are received.
What is a credit transaction?
Where payment is made some time after the delivery.
What is a trade discount?
When a discount is given by one trader to another
What is a cash discount?
A reduction in the amount a customer has to pay provided payment is made within a given period.
What is the book of prime entry?
First place in the accounting system where a transaction is recorded.
What is an invoice?
Document sent by the seller to the buyer to inform them of how much is owed.
What is a debit note?
Sent by the sellers to the buyers if they have been undercharged.
What is a credit note?
Sent by the seller to the buyer if they return goods or if the seller has overcharged.
