invoice and settlement

What is an invoice primarily used for?

• To request payment in advance

• To record the total amount due for delivered goods or services

• To notify of a credit limit

• To advertise new products

When emailing an invoice, no covering letter is needed

• True

• False

What is the purpose of a debit note issued by a supplier?

• To acknowledge an overcharge

• To reduce the amount owed by the buyer

• To increase the amount owed by the buyer

• To confirm payment has been received

What statements is included on invoices to reserve the right to correct errors?

• VAT included

• Pro Forma Invoice

• Payment terms

• E & OE

Which of the following details is NOT typically found on an invoice? (multiple answers)

• Description of goods

• Invoice number

• Company's financial

• Monthly sales target

A settlement discount is offered to encourage buyers to pay late.

• True

• False

What does E & EO stand for?

• Errors and Omissions Excepted

• Errors and Exclusions Observed

• Every Error and Omission

• Errors & Exclusions Official

Proforma invoices are entered into the books and charged to the accounts of the person to whom the invoice was sent.

• True

• False

What does a pro-forma invoice serve as?

• A formal receipt of payment

• A document used for legal disputes

• A formal quotation or a request for payment in advance

• A regular billing statement

When a buyer returns goods and requests a credit for them, which document is issued by the supplier?

• Debit note

• Credit Note

• Pro forma invoice

• Statements of account