Documents of Trade

Which document is sent as a response to an enquiry?

• A. advice note

• B. delivery note

• C. invoice

• D. quotation

A supplier may allow his customer cash discount

• A. because he is a regular customer.

• B. for paying in cash rather than by cheque.

• C. for prompt payment.

• D. to allow him to make a profit when re-selling the goods.

What is a purpose of a credit note?

• A. to decrease the amount owing on the invoice

• B. to give details of goods returned to the supplier

• C. to remind customers of the amount due

• D. to show packing cases have been purchased

What is NOT contained on a statement of account?

• A. balance at the end of the period

• B. balance at the start of the period

• C. credit notes issued during the period

• D. description of goods bought during the period

A customer would expect trade discount to be deducted from the value of goods bought when

• A. goods are bought on credit.

• B. goods are intended for resale.

• C. it is a cash transaction

• D. the debt is paid promptly.

Why does a manufacturer obtain quotations from more than one supplier?

• A. to assist the checking of the manufacturer’s accounts

• B. to check deliveries of goods from suppliers

• C. to compare suppliers’ prices

• D. to find out how much the manufacturer owes suppliers

The diagram represents a commercial transaction.

What is the missing document X?

• A. advice note

• B. catalogue

• C. delivery note

• D. receipt

Which document, prepared by the seller, shows a number of transactions and is sent to the buyer at the end of a trading period?

• A. credit note

• B. delivery note

• C. invoice

• D. statement of account

What is the purpose of an invoice?

• A. to list the price and details of goods supplied

• B. to prove that goods ordered have been delivered

• C. to provide a detailed description of goods required

• D. to show changes in price and terms of payment

What is added to the cost price of goods to cover overheads and profit?

• A. cash flow

• B. mark-up

• C. sales turnover

• D. working capital