quiz 5/25/23 Flashcards
what is the color of the credit notes?
printed in red
what is the color of invoices?
printed in blue
What is the cash book?
where the cash account and the bank account are put together in one book.
what’s the purpose of Cash discounts?
- to encourage early payment of accounts
Discount Allowed
Is a reduction of the total amount of payment given by a business to its customers. (Expense)
Discount received
Is a reduction of the total amount of payment given by a Supplier to the business. (Revenue)
Discount columns are ____________ and cash and bank columns are __________
totaled and balanced
Cheques Deposited
The payment into the bank were cheques received by the business which were banked on receipt.
Bank statement
is when the bank sends a copy of the account in its
own books to the business periodically.
Cash Deposited
business who receives large amounts of cash transfer it to the bank for security propose.
Cash Withdrawn
when a business takes money out of the bank account in the form of cash for business purpose.
The use of Folio Columns
To contain the name of the account in which the other part of the double Entry has been entered.
Advantages of folio columns
help locate where entries have been posted.
confirms transactions
easy access and understanding whether all the entries has been posted in the relevant accounts or not.
Cash discounts
The amount of the reduction of the sum to be paid.
