The Purchase Cycle

Question 1

The purchase of goods on credit by the business either for resale or for consumption in their business activities and will generate financial documents that will each need to be checked and authorised

Complete the below sentences:

The ________ ________ to be sent to the supplier

A ________ _________ from the supplier (when the goods are delivered, detailing quantities and description)

A __________ _________ received from the supplier requesting payment

A _______ __________ to send to the supplier with payment

Answer 1

The purchase order to be sent to the supplier

A delivery note from the supplier (when the goods are delivered, detailing quantities and description)

A purchase invoice received from the supplier requesting payment

A remittance advice to send to the supplier with payment

Question 2

The Purchase Cycle

Complete this sentence:

Most businesses will hold a small amount of actual cash known as a ______ _______ (notes and coins) at their premises which will be used to pay for small ______ such as paying the milkman and taxi fares as well as other _______ items

Payments made out of the ______ ______ generate a document called a _____ _______ ________

Answer 2

Most businesses will hold a small amount of actual cash known as a petty cash (notes and coins) at their premises which will be used to pay for small expenses such as paying the milkman and taxi fares as well as other small items

Payments made out of the petty cash generate a document called a petty cash voucher