Chapter 2 - Accounting Information System

_______ Theory: only business activities that can be expressed in monetary terms are recorded in the business' books.

• Monetary

• Money

• Cash

• Monies

____ transactions: payment is made at the same time or immediately during sales or purchase.

_____ transactions: payment is delayed or postponed during a sale or purchase.

______ theory: Accounting information recorded must be supported by reliable and verifiable evidence so that financial statements will be free from opinions and biases.

This document is used to acknowledge payment received from customers immediately after the business has sold goods or provided services

• Invoice

• Receipt

• Credit Note

• Debit Note

This document is used to inform credit customers of the amount owed after the business sold goods or provided services on credit.

• Invoice

• Receipt

• Credit Note

• Debit Note

This document is used to reduce the amount owed by credit customers who were previously overcharged / after goods were returned.

• Invoice

• Receipt

• Credit Note

• Debit Note

This document is used to increase the amount owed by credit customers who were previously undercharged.

• Invoice

• Receipt

• Credit Note

• Debit Note