Learning Aim B - Financial Records Flashcards
Purchase order (define and number)
1 - completed by buyer, lists specific items required and the price
Delivery note (define and number)
2 - completed by supplier, lists all items in the delivery
Goods received note (definition and number)
3 - sent by buyer, confirmation they’ve received the goods
Invoice (definition and number)
4 - completed by supplier, lists: goods delivered, money owed, date payment should be by
Receipt (definition and number)
5 - completed by supplier, sent once goods are paid for
Statement of account (definition and number)
6 - completed by supplier, sent once a month and is a summary of everything
Problems if not keeping accurate financial documents
Lose track of how much is owed
Miscalculate profit or cash flow forecast
What are the payment methods
Cash
Credit card
Debit card
Direct debit
Payment technologies
Influences of choice of payment method
Convenience
Ability to pay
Technology
Safety and security
Costs
Advantages of cash
No technology needed
Convenient for customers
Disadvantages of cash
Money can be lost or stolen
Mistakes can be made during transaction
Advantages of credit cards
Payment received immediately
Spend more money than you have
Disadvantages of credit cards
High interest rates
Customers can’t spend above credit limit
Advantages of direct debit
Easy to pay regular bills
Spreads cost over long time
Disadvantages of direct debit
Must have sufficient funds to pay monthly
