ITFA Chapter 2 Flashcards
Types of business transaction & documentation
What is document/paperwork for?
evidence of the business and accounting transaction
Where is document/paperwork kept in?
Kept in a separate file in chronological order and serially numbered
How long is document/paperwork kept for?
5-7 years for reference purpose
Doc quotation
Formal statement setting out estimated cost for a particular product or service
Doc purchase order
The buyer issue this document, requesting to buy goods
Doc invoice
Sales of goods in credit, specifies the terms of the deal and provides information on available methods of payment
Doc delivery order
Issued by the seller when the seller delivers the goods to the buyer premises
Doc debit note
Issued by the customers when goods are returned to a supplier
Doc credit note
Issued by the business (supplier) upon the receipt of goods returned by a dissatisfied customer
Doc receipts
Issued by the business as acknowledgement of receipt of cash
Revenue
income earned by business resulting from sale of goods, fees and commissions, rental income, interest received and royalties
What happens when revenues earned?
Will results in an in
