Section 1, Lesson 1, Unit 2

Question 1

Credit sale

Answer 1

Good sold to a customer with a credit account. To be paid for by an agreed amount of time e.g. 30 days

Question 2

Cash sales

Answer 2

Goods sold to a customer who does not have a credit account with the company. You receive the payment immediately.

Question 3

Credit purchases

Answer 3

Goods bought from a supplier who you have a credit account with, to be paid on an agreed time e.g. 30 days.

Question 4

Credit sales

Answer 4

Goods the business buys from a supplier who you do not have a credit account with. Paid for immediately.

Question 5

An Invoice is sent to the customer, it records

Answer 5

Who the customer is
Items sold
Date of sale
Value of transaction
How long the customer can wait before paying e.g. 30 days.”