Learning Aim B Flashcards
Financial Records
six financial documents
delivery notes
invoice
credit note
statement of account
remittance advice slip
receipt
delivery notes
a document that comes with the goods and acts as checklist for the buyer, needs to be accurate to prevent disputes with the buyer
invoice
a document from seller to buyer requesting payment from the goods that often acts as a record of transaction if inaccurate could lead to payment delays
credit note
a document from seller to buyer when money is owed back to the buyer if inaccurate could lead to tax reporting
statement of account
a document listing the transactions between the buyer and the seller during a specific time. acts as a payment reminder if inaccurate could prevent payments
remittance advice slip
a document sent by the buyer to notify the seller of invoice payment, if inaccurate could harm buyer seller relationship
receipt
a document that has proof of transaction and confirms payment, it can be used for returns or refunds, inaccuracy results in an issue with processing financial records
what do delivery notes consist of
sellers name and contact details
buyers details and address
description and quantity of goods
the date it was sent
what do invoices consist of
sellers name and contact details
buyers details and address
description and quantity
list of prices and total
purchase order number
invoice number
what do statement of account consist of
sellers name and contact details
buyers details and address
opening balance
date of statement
reference number
date amount for each transaction
remaining balance to be paid
what do remittance advice slip consist of
sellers name and contact details
buyers details and address
invoice number
payment amount
what do credit note consist of
sellers name and contact details
buyers details and address
invoice number
unit prices
credit number
what do receipt consist of
sellers name and contact details
buyers details and address
transaction of invoice number
date of payment
list of items and price
amount paid
any remaining balance
three payment methods
cash
debit card
credit card
why are they different methods of payment
diverse customer preferences
cash
positives and negatives
a physical from of payment
pros - immediate payment and no transaction fees
cons - could lose, get stolen, damaged
credit
positives and negatives
used to borrow money for payments
pros - convenient, enhanced security, improved cash flow, potential for rewards
cons - potential payment fraud, processing fees
debit
positives and negatives
contactless online payment
pros - no loss of money, convenient
cons - potential payment fraud, processing fees
what is direct debit
electronic payment method where customers allow business to collect money from their accounts e.g subscriptions
positives and negatives of direct debit
pros - high security
cons - slow payment process if first time
why is modern payment technology used
for seamless shopping experience and convenience
e.g: Apple Pay, Paypal
positives and negatives of modern payment
pros - convenient, enhanced security and no authorisation
cons - potential fraud and transaction process fees
what are the two types of revenue
operating revenue and non operating
