Chapter 5 FA1

Which of the following best described the EFTPOS system

• The organisation can invoice its bank, electronically, for the value of goods sold in a trading period

• Funds are transferred automatically from a customer's bank account to the organisation's bank, when goods are purchased

• EFTPOS acts as a form of line validation of cheques rendered by customers

• Electronic Financial Transaction for Purchases or sales

If you have sold goods to a customer which have a high value, which of the following methods of payment would be most appropriate?

• Banker's draft

• Credit card

• Cheque

• Credit sale

What is a remittance advice?

• A document which is sent to a supplier containing detailed delivery instructions

• A document prepared by a supplier on a regular basis listing the outstanding amounts and payment received in the most recent trading period

• A document used to confirm a telephone order

• A document sent with a payment explaining what the payment represents

Which of the following is NOT characteristic of a banker's draft

• It cannot be stopped after issue

• It provides cheap source of finance for high value of purchases

• It is a secure form off payment for a recipient

• It is commonly used for payments of high value

What document can be given to a customer who pays for goods at the time of a transaction

• Purchase order

• Statement

• Credit note

• Receipt