financial documents

Question 1

purchase order

Answer 1

completed by the buyer.
a legal offer to buy goods from the supplier.
lists the items required, price agreed and quantity.

Question 2

delivery note

Answer 2

completed by the supplier.
sent to the customer when the goods are delivered.
lists the details about the order and the contents of the delivery.
used by the customer to check the delivered goods match the purchase order.

Question 3

goods received note

Answer 3

completed by the buyer.
confirms all goods have been received.
can be compared to the purchase order before payment is made.

Question 4

invoice

Answer 4

completed by the supplier.
a request for payment.
lists the price of the goods and the amount owed.
states the date by which money must be paid.
explains how to pay, for example, by bank transfer.

Question 5

receipt

Answer 5

completed by the supplier and sent to the customer.
a record of payment made by the customer.

Question 6

credit note

Answer 6

completed by the supplier and sent to the customer.
lists any goods that might have been returned.
confirms the money refunded to customer or how it may be used against future purchases.

Question 7

statement of account

Answer 7

completed by the supplier and sent to the customer.
a summary of the orders placed and the goods returned over a period of time, maybe a month.
will show the account balance, this could be positive, negative or zero if everything has been paid.

Question 8

remittance advice

Answer 8

document sent by the customer to the seller with details of the payment they have made.

Question 9

cash pros

Answer 9

accepted in most places.
small denominations are available so can pay for small items.

Question 10

cash cons

Answer 10

can be lost or stolen.
not suitable for online purchases,

Question 11

credit cards pros

Answer 11

allows the customer to delay a payment and spread it out over a period of time.
mostly accepted.
can be used online or in store.

Question 12

credit cards cons

Answer 12

interest is charged making the payment more expensive.
can encourage over spending.

Question 13

debit cards pros

Answer 13

secure method of payment.
widely accepted.
contactless is quick and convenient.

Question 14

debit card cons

Answer 14

contactless has increased the risk of fraudulent use.
need to monitor spending balance.

Question 15

direct debit pros

Answer 15

ensures regular payments are not missed.
ensures correct amount is paid as the amount can vary.

Question 16

direct debit cons

Answer 16

account can become overdrawn if you don’t have enough money.

Question 17

payment technologies pros

Answer 17

payments using a smart phone can be convenient.
banks such as paypal allow money to be transferred online.

Question 18

payment technologies cons

Answer 18

some payment technologies like paypal charge a fee.
technology can malfunction meaning payments cannot be made.