Invoices Flashcards
1
Q
How many parties does a normal business transaction involve?
A
Two parties are involved. The seller provides goods and services and the buyer pays the seller cash for the goods or services.
2
Q
How do we answer the following:
How much $ does the buyer owe?
What specifically are they paying for?
How long do they have to make the payment?
A
All of these questions are answered in the Invoice which is provided by the seller to the buyer.
The Invoice shows the buyer an itemized list of what they owe.
3
Q
When is the transaction considered complete in invoicing?
A
When the buyer sends payment to the seller.
4
Q
Why are Invoices important?
A
Sellers want to get paid!
The government is keen on them.
They trigger the accounting entry in the books of both the buyer and the seller.
