Chp 17. Procedure and documents used in home trade-

________ is a document that is sent by the seller to the buyer in response to a specific letter of enquiry.

• catalogue

• acknowledgement

• quotation

• order

Debit note can be created by either seller or buyer.

• True

• False

(a)   means a bill of charges or document sent by he seller to the buyer when goods are supplied.

The buyer writes to the seller to know the type of good and their prices.

• advice note

• enquiry

• acknowledgement

• order

An order must clearly specify details regarding

• number of order for future reference

• name and address of the buyer

• Both (a) and (b)

• neither (a) nor (b)

An (a)   is a formal acceptance by the buyer of the offer made by the seller in his quotations.

Assertion(A): Quotations are generally prepared in triplicate with proper reference to enquiry.

Reason(R): In a catalogue, the code numbers of the products are given to facilitate easy identification.

• Both (A) and (R) are true and (R) is the correct explanation of (A)

• Both (A) and (R) are true and (R) is not the correct explanation of (A)

• (A) is true but (R) is false

• (A) is false but (R) is true

Is quotation an offer or invitation to offer?

(a)   is an allowance given to induce customers to pay debts promptly.

(a)   is a document which shows that the goods have been delivered by the seller.