POA quiz 2

Question 1

Carriage Paid

Answer 1

the cost of transport has been included in the costs of the goods.

Question 2

COD “Cash on delivery”

Answer 2

the goods must be paid for on delivery.

Question 3

E & OE

Answer 3

“Errors and omissions excepted”
- the receipts are expected to have many possible errors and omissions which indicates that the figures are incorrect.

Question 4

Ex Works

Answer 4

the price of the goods does not include delivery costs.

Question 5

Net Monthly

Answer 5

• Appears at the foot of an invoice
• the full amount of the invoice is due for payment within one month of the date of the invoice.

Question 6

What is the purpose of the Sales Day Book?

Answer 6

To provide information on credit sales made by the business to the customer.

Question 7

Purpose of the SALES INVOICE

Answer 7

To prove sales transactions made on credit

Question 8

Source document

Answer 8

Sales Invoice

Question 9

Book of original Entry

Answer 9

Sales day book

Question 10

Why is credit control important?

Answer 10

ensures the business maintains a healthy cash flow by minimizing the chances of suffering from bad debt.