Business Documents Gr:8

What is a trade discount?

• A tax on sales

• A fee for late payments

• A deduction on the list price for bulk purchases

• A discount for prompt payment

How is a cash discount recorded?

• Only in the buyer's records

• In the books of accounts

• Not recorded at all

• Only in the seller's records

What does an invoice inform customers about?

• The total amount payable to the supplier

• The amount of cash discount available

• The bank account details

• The trade discount percentage

Who sends a debit note?

• The customer to the bank

• The seller to the buyer

• The bank to the customer

• The buyer to the seller

What is a credit note used for?

• To request payment from the buyer

• To record sales returns and purchase returns

• To issue a trade discount

• To summarize bank transactions

When is a statement of account sent?

• At the beginning of each month

• At the end of each month

• Every week

• Only when requested

What is a cheque?

• A summary of bank transactions

• An order to a bank to pay a stated sum

• A document for returning goods

• A record of cash discounts

What is the purpose of a cheque counterfoil?

• To record payments by cheque

• To summarize transactions

• To issue a debit note

• To inform about trade discounts

What does a pay in slip document?

• A summary of customer transactions

• A document for depositing cash or cheque

• A record of payments made by cheque

• A request for a cash discount

What does a bank statement summarize?

• All transactions in the business' bank account

• The total amount of trade discounts

• The cash discounts given to customers

• The invoices issued to customers