C2 POA Theory

Which is the purpose of credit note

• To record credit sales/ purchase of goods

• To record returns of goods bought/sold on credit

• To record cash sales/purchases

• To record an undercharge after the credit sale/purchases

Which is the purpose of debit note

• To record credit sales/purchase of goods

• To record returns of goods brought/sold on credit

• To record cash sales/ purchases

• To record an undercharge after the credit sales/ purchases

Which is the purpose of a receipt

• To record credit sales/ purchases of goods

• To record return of goods bought/ sold on credit

• To record cash sales/ purchases

• To record an undercharge after the credit sales/ purchases

Which is the purpose of an invoice

• To record credit sales/ purchases of goods

• To record returns of goods bought/ sold on credit

• To record cash sales/ purchases

• To record an undercharge after the credit sales/ purchases

State the objectivity theory

Cash transaction is when payment is made ___________ during a cash sale or cash purchase

Credit transaction is when payment is made at a ______ date during a ______ sale/purchase

Which source document is used to process payment to credit suppliers, must be approved by authorised personnel and supported with original supplier's invoice

• Payment voucher

• Credit note

• Debit note

What are the 4 stages of the accounting cycle

• 1) Adjust 2) Identify and record

  3) Report

  4) Close

• 1) Report

  2) Adjust

  3) Identify and record

  4) Close

• 1) Identify and record 2) Adjust

  3) Report

  4) Close

• 1) Close

  2) report

  3) Identify and record

  4) Adjust