PAYMENT DOCUMENTS AND METHODS OF MAKING PAYMENTS

Question 1

DELIVERY NOTE

Answer 1

sent by the supplier with the goods that are being delivered

Question 2

GOOD RECEIVED NOTE

Answer 2

used by the customer for checking that the goods received match the purchase order.

Question 3

PAYSLIP

Answer 3

produced by the business and given to employees to show their gross pay, deductions, and net pay. Deductions include income tax, national insurance, pension contributions and, for graduates, student loan repayments.

Question 4

RECEIPT

Answer 4

a document that shows that goods or services have been bought and paid for.

Question 5

REMITTANCE ADVICE

Answer 5

sent from a customer to a supplier, informing the supplier that their invoice has been paid

Question 6

REQUEST FOR REPAIR FORM

Answer 6

a document sent to the maintenance department within an organisation or to an external repair company if equipment is not functioning properly.

Question 7

CHEQUE

Answer 7

a document completed by the payer and given or sent to the payee. It states the name of the payee and the amount to be paid.

Question 8

Advantages of cheque payments

Answer 8

The payer has a record of the amount paid on the cheque counterfoil.
It can avoid having to handle large amounts of cash.

Question 9

Disadvantages of credit card payments

Answer 9

Some businesses charge an additional fee for credit card payments.
The rate of interest is extremely high if the statement is not paid in full each month.

Question 10

debit card

Answer 10

allows businesses to make payments through their bank account or to withdraw cash from the bank account

Question 11

Advantages of debit card payments

Answer 11

It is quicker than making payments by cheque.
It can be used for online payments.

Question 12

Disadvantages of debit card payments

Answer 12

Some businesses charge an additional fee for debit card payments.
Fraud is increasingly an issue when using debit cards.
The payee must buy appropriate technology to allow payments to be processed.

Question 13

ONLINE/DIGITAL PAYMENT METHODS

Answer 13

include the use of credit cards and debit cards, as well as digital payment methods such as Paypal

Question 14

Advantages of online/digital payments

Answer 14

They are convenient and easy to use for customers.
Ease of use for customers may generate higher levels of sales for businesses.

Question 15

Disadvantages of online/digital payments

Answer 15

Some businesses charge an additional fee for online payments.
Fraud is increasingly an issue when making online payments.

Question 16

bank payments

Answer 16

include the use of paying-in slips and electronic transfers.

Question 17

paying in slip

Answer 17

completed when paying cash or cheques into a bank account.

Question 18

advantages of paying in slips

Answer 18

The provide a physical record of amounts that have been banked.

Question 19

disadvantages of paying in slip

Answer 19

Completing this paperwork is an additional task for the person banking the money.

Question 20

electronic transfer

Answer 20

the electronic movement of funds between one bank account and another. This may be a standing order (instructing the bank to pay a specific amount on a regular basis) or a direct debit (authorising a supplier to take funds from the customer’s bank account). Or it may be used for one-off payments.

Question 21

advantages of electronic transfer

Answer 21

They are quicker and more convenient than other methods of payment.

Question 22

disadvantages of electronic transfer

Answer 22

The payer doesn’t keep a record of these payments until receiving a bank statement showing that they have been made.