Types Of Trans

Question 1

How many different types of trans are there?

Answer 1

6

Question 2

What are the diff types of trans?

Answer 2

Credit sales
Credit purchases
Cash sales
Cash purchases
General expenses
Drawings

Question 3

What does a cash sale include?

Answer 3

Cash, debit or credit cards

Question 4

What does a customer receive after a cash trans?

Answer 4

A receipt

Question 5

What does a credit sale involve?

Answer 5

Having goods now, and paying later

Question 6

What is a PO?

Answer 6

Used by the cust to show what they wish to order

Question 7

What does a customer receive when they enquire about a price?

Answer 7

A formal quotation

Question 8

Will existing customers already have credit terms agreed by seller?

Answer 8

Yes

Question 9

What is recommended to request for a new cust under credit terms?

Answer 9

Trade references from the customers other suppliers & check credit via agency

Question 10

How can you check credit worthiness for a new customer?

Answer 10

Via agency

Question 11

What do the results for a credit term and credit limit depend on?

Answer 11

The results of a credit check

Question 12

What is the risk of credit terms?

Answer 12

Cust fails to pay, resulting in a bad debt to business

Question 13

What happens when a trans has taken place?

Answer 13

The trans will be entered in the books of prime entry

Question 14

Where is the trans initially recorded?

Answer 14

Books of prime entry

Question 15

How many steps is there in the processing of ordering,

Answer 15

5

Question 16

What are the steps when ordering or selling goods?

Answer 16

Quote, PO, sales order, delievery note, goods received note

Question 17

Who provides the quote?

Answer 17

The seller provides the quote

Question 18

Who provides the PO?

Answer 18

The PO is provided by the customer, to the seller

Question 19

When does the sales order get received?

Answer 19

When the PO is received from the customer

Question 20

Who gets sent the Sales order?

Answer 20

The customer

Question 21

What is the delivery note?

Answer 21

A note to show goods have been received

Question 22

How many parts does a delievery note have?

Answer 22

3

Question 23

Why does a delievery note have 3 parts?

Answer 23

1-customer keeps
2- returned to seller
3- kept by courier

Question 24

What is the goods received note used for?

Answer 24

To show what goods the customer has received

Question 25

When can an invoice be issued?

Answer 25

When goods have been received

Question 26

What does an invoice have to include?

Answer 26

Name and address of supplier
Cust name and address
Date of purchase
Details of goods&service provide
Cost
Terms of trade
Discount details

Question 27

What happens if goods are returned?

Answer 27

A credit note is issued

Question 28

When does a credit note get issued?

Answer 28

When goods are returned, to settle a dispute or to adjust a prompt payment discount

Question 29

What impact does a credit note have?

Answer 29

Impacts the amount due to the supplier of the goods

Question 30

What should a quote include?

Answer 30

Name, address and email address of business and cust
Date issued
Details of goods
Prices quote
Authorised signature

Question 31

What does a PO include?

Answer 31

Name address and email address of business and cust
Date of order
Sequential purchase order
Details of goods
Price quote
Signature

Question 32

What does a sales order confirm? List..

Answer 32

Quantity/type of goods
Date of supply
Location of supply
Price and terms

Question 33

What does a quote show?

Answer 33

How much the supplier will sell the goods for

Question 34

What happens when a customer is happy with the quotation?

Answer 34

They place an order using a PO

Question 35

What happens when a supplier receives the PO?

Answer 35

A sales order can be sent to the customer for confirmation

Question 36

What is a sales order?

Answer 36

The goods will be delivered to the customer with a delivery note