BUAD302 Invoices recap

What is the purpose of a purchase order?

• To charge customers for goods sold

• To order required goods from a supplier

• To charge customers for services sold

• For our suppliers to charge us for goods supplied

Is a purchase order part of the cash or credit document cycle?

• Cash

• Credit

Is a purchase order sent to a customer or to a supplier?

• Customer

• Supplier

Select TWO internal controls over purchase orders

• Three copies must be made for each purchase order

• They are only issued by authorised staff

• Purchase orders must be filed in a locked drawer

• They are numbered sequentially (i.e. 123, 124, 125)

What is the purpose of an invoice?

• To charge customers for goods or services sold

• To order required goods from a supplier

• To charge suppliers for goods or services sold

• For customers to charge us for goods or services

Is an invoice part of the cash or credit document cycle?

• Cash

• Credit

Select TWO internal controls over invoices

• Three copies must be made for each invoice

• Invoices are issued in strict numerical order

• Invoices must be filed in the cash register

• Only one invoice is issued for each supply