Week 2 Analyzing Source Documents & Recording Transaction

How do invoices help businesses?

• By tracking accounts receivable

• By increasing sales

• By reducing expenses

• By managing employee schedules

What is NOT a function of an invoice?

• Outlining products or services

• Serving as legal proof

• Tracking inventory

• Helping in tracking accounts receivable

What is the legal significance of an invoice?

• It is a tax document

• It serves as legal proof of a transaction

• It is a marketing tool

• It is a financial forecast

Which of the following is NOT typically found on an invoice?

• Total amount due

• Product or service details

• Employee salaries

• Seller's information

What is the primary content of an invoice?

• Employee details

• Product or service details and total amount due

• Marketing strategies

• Company history

What is the primary purpose of a receipt?

• To serve as a warranty

• To verify cash flow

• To advertise products

• To provide customer feedback

How do receipts assist with tax deductions?

• By providing proof of payment

• By offering discounts

• By listing tax rates

• By showing product reviews

What is directed by a check?

• A bank to close an account

• A bank to pay a specified amount

• A bank to issue a loan

• A bank to transfer digital currency

What is a purchase order?

• A document created by a seller to offer products

• A document created by a buyer to request products or services

• A receipt for a completed transaction

• A contract for employment

What do purchase orders outline?

• Only the price of the products

• The buyer's personal information

• The specifics of the order including quantity, description, and agreed prices

• The seller's business history