Business documents and books of prime entry

Definite amount that is deducted from the list price of the goods for the supplies to some customers, with the intention of encouraging and rewarding customer loyalty. Choose the correct option.

• bulk discount

• prompt payment discount

• trade discount

• price quotation

Discount given by a supplier for sales orders above a certain quantity.

• Trade discount

• Bulk discount

• Prompt payment discount

Discount also known as settlement or cash discount- offered to customers in order to encourage early payment of invoices.

• Prompt payment discount

• Bulk discount

• Trade discount

A buyer generated document that authorises a purchase transaction.

• Delivery note

• Purchase order

• Invoice

• Sales order

A seller generated document that authorises a sale to a customer, issued after the receipt of a purchase order.

• Purchase order

• Delivery note

• Invoice

• Sales order

A document accompanying goods despatched to a customer explaining what the delivery contains.

• Purchase order

• Invoice

• Sales order

• Delivery note

Internal document completed by the purchaser that records the details of goods received and contains similar information to a delivery note.

• Purchase order

• Sales order

• Invoice

• Goods received note

Document that itemises a transaction between a buyer and a seller, it is request for the buyer to make payment for goods sold or services provided by the seller.

• Delivery note

• Invoice

• Purchase order

• Good received note

Tax charged on the sale of goods and services.

• Input tax

• Output tax

Tax paid on the purchase of goods and services.

• Input tax

• Output tax