DOCUMENTS USED IN HOME TRADE

1. What is the main purpose of a delivery note?

• A. To enable the customer to check that the goods received are correct

• B. To inform the customer that the goods have been sent

• C. To show the prices of goods delivered

• D. To state the amount of money to be collected when goods are delivered

2. What information would be found in a quotation?

• A. Details of goods returned by a customer

• B. Instructions to a carrier relating to the delivery of goods

• C. Prices and terms under which the goods will be sold

• D. Summary of a number of transactions

3. 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.

• 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.

4. In what order should the following home trade documents be used?

• A. Invoice, statement, order, quotation

• B. Order, quotation, invoice, statement

• C. Quotation, order, invoice, statement

• D. Statement, invoice, enquiry, order

5. What does a wholesaler offer to encourage retailers to buy large quantities of goods?

• A. Cash discount

• B. Cash with order

• C. Hire purchase

• D. Trade discount

6. “2.5 % 1 month” is printed on an invoice totalling $100. What does this mean?

• A. $2.50 is paid each month.

• B. $2.50 was underpaid last month. h

• C. $97.50 is paid if the invoice is settled within one month.

• D. $102.50 is paid if the invoice is settled within one mont

7. What is the purpose of printing ‘E. and O.E.’ on an invoice?7

• A. To enable mistakes to be corrected later by the supplier

• B. To ensure that the customer does not alter the figures

• C. To give details of cash and trade discounts

• D. To show that the supplier has made an error

8. What does a statement of account sent by a wholesaler to a retailer show?

• A. Amount of money owed by the retailer to the wholesaler

• B. Prices of goods delivered

• C. Quantity of damaged goods returned to the wholesaler

• D. Type and quality of goods delivered

9. An advice note is used when

• A. a buyer returns goods to the seller.

• B. a seller requests payment.

• C. goods have been despatched.

• D. there is an error resulting in an undercharge

10. 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