Learning Aim B

Question 2

six financial documents

Answer 2

delivery notes
invoice
credit note
statement of account
remittance advice slip
receipt

Question 3

delivery notes

Answer 3

a document that comes with the goods and acts as checklist for the buyer, needs to be accurate to prevent disputes with the buyer

Question 4

invoice

Answer 4

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

Question 5

credit note

Answer 5

a document from seller to buyer when money is owed back to the buyer if inaccurate could lead to tax reporting

Question 6

statement of account

Answer 6

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

Question 7

remittance advice slip

Answer 7

a document sent by the buyer to notify the seller of invoice payment, if inaccurate could harm buyer seller relationship

Question 8

receipt

Answer 8

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

Question 9

what do delivery notes consist of

Answer 9

sellers name and contact details
buyers details and address
description and quantity of goods
the date it was sent

Question 10

what do invoices consist of

Answer 10

sellers name and contact details
buyers details and address
description and quantity
list of prices and total
purchase order number
invoice number

Question 11

what do statement of account consist of

Answer 11

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

Question 11

what do remittance advice slip consist of

Answer 11

sellers name and contact details
buyers details and address
invoice number
payment amount

Question 12

what do credit note consist of

Answer 12

sellers name and contact details
buyers details and address
invoice number
unit prices
credit number

Question 13

what do receipt consist of

Answer 13

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

Question 14

three payment methods

Answer 14

cash
debit card
credit card

Question 15

why are they different methods of payment

Answer 15

diverse customer preferences

Question 16

cash
positives and negatives

Answer 16

a physical from of payment

pros - immediate payment and no transaction fees
cons - could lose, get stolen, damaged

Question 17

credit
positives and negatives

Answer 17

used to borrow money for payments
pros - convenient, enhanced security, improved cash flow, potential for rewards
cons - potential payment fraud, processing fees

Question 18

debit
positives and negatives

Answer 18

contactless online payment
pros - no loss of money, convenient
cons - potential payment fraud, processing fees

Question 19

what is direct debit

Answer 19

electronic payment method where customers allow business to collect money from their accounts e.g subscriptions

Question 20

positives and negatives of direct debit

Answer 20

pros - high security
cons - slow payment process if first time

Question 21

why is modern payment technology used

Answer 21

for seamless shopping experience and convenience
e.g: Apple Pay, Paypal

Question 22

positives and negatives of modern payment

Answer 22

pros - convenient, enhanced security and no authorisation
cons - potential fraud and transaction process fees

Question 23

what are the two types of revenue

Answer 23

operating revenue and non operating

Question 24

what is operating revenue

Answer 24

money you make from your business

Question 25

what is non operating revenue

Answer 25

don’t make money directly linked to the business

Question 26

ways to maximise revenue

Answer 26

• increasing prices but carefully to not scare customers
• lowering prices attracting more sales
• better marketing
• diverse your products

Question 27

what are start up and running costs

Answer 27

the money spent on a business

Question 28

what are start up costs spent on

Answer 28

marketing, hiring, research and insurance

Question 29

what are start up costs

Answer 29

money before the business has started

Question 30

what are running costs spent on

Answer 30

rent, salaries, utilities

Question 31

what are running costs

Answer 31

day to day expenses

Question 32

why are minimising costs used

Answer 32

to achieve more profits

Question 33

two ways of minimising costs

Answer 33

automation and outsourcing

Question 34

what are the two main types of running costs

Answer 34

fixed cost and variable costs

Question 35

what are examples of fixed costs

Answer 35

heating and lighting, rent and insurance

Question 36

what are variable costs and an example

Answer 36

costs directly related to the items produce or sold e.g the more orders for t shirts more material will be need to make them

Question 37

what are total running costs

Answer 37

fixed costs and variable costs added together

Question 38

calculation for total costs

Answer 38

total costs = fixed costs + variable costs

Question 39

give an example of minimising costs

Answer 39

downsizing on office space

Question 40

calculation for revenue on a profit and loss account

Answer 40

sales x price per unit

Question 41

calculation for profit (gpm)

Answer 41

profit = revenue - costs