Y10 Accounting - C6 Business Documents

What is an invoice?

• A document that requests payment from a customer

• A document that summarizes monthly transactions

• A document issued by the supplier showing details of goods supplied

• A document showing the total profit of a business

What information is NOT typically included in an invoice?

• Full details of the goods supplied

• Customer's bank account number

• Date of invoice

• Name and address of the supplier

What is a trade discount?

• A fee for processing an invoice

• A penalty for late payment

• A reduction in the price of goods

• An additional charge for bulk orders

Why might a purchaser issue a debit note?

• To request a reduction in the invoice amount

• To request a refund for damaged goods

• To notify the supplier of a new order

• To confirm payment has been made

What is a credit note?

• A document that requests payment from a customer

• A document that summarizes all transactions for a year

• A document issued to notify a reduction in a previous invoice

• A document that confirms payment has been received

What is the purpose of a statement of account?

• To summarize the transactions for the month

• To confirm the delivery of goods

• To request payment from the customer

• To issue a refund to the customer

What is a cheque?

• A receipt for goods purchased

• A document issued to confirm a sale

• A written order to a bank to pay a stated sum of money

• A document that summarizes monthly transactions

What does a receipt serve as?

• A record of goods returned

• A request for payment

• Proof of payment

• A summary of transactions

What is the main reason for giving a trade discount?

• To simplify accounting records

• To increase the price of goods

• To encourage customers to buy in bulk

• To reduce the number of invoices issued

What information is included in a debit note?

• Customer's payment history

• Supplier's bank details

• Details of goods returned or overcharged

• Total amount due