Understanding Accounting Documents

What is an invoice used for in accounting?

• An invoice is used to track employee attendance.

• An invoice is a document for internal budgeting purposes.

• An invoice serves as a receipt for returned items.

• An invoice is used to request payment for goods or services provided.

Which document proves that goods have been received?

• Purchase order

• Invoice

• Delivery receipt or goods receipt

• Shipping label

A receipt is issued when:

• A transaction occurs.

• A product is returned.

• A payment is made.

• A service is canceled.

What is a purchase order?

• A purchase order is a summary of sales transactions.

• A purchase order is a formal request to buy goods or services.

• A purchase order is a type of invoice.

• A purchase order is a receipt for goods received.

Which of the following is a financial document that summarizes all sales transactions for a given period?

• Cash Flow Statement

• Sales Report

• Balance Sheet

• Income Statement

What is the purpose of a bank statement?

• To provide a list of bank employees

• To calculate interest rates for loans

• To advertise new banking products

• The purpose of a bank statement is to summarize account transactions and provide financial information.

What is a credit note used for?

• A credit note is used to document a reduction in the amount owed by a buyer, typically due to returns or overpayments.

• A credit note is used to increase the amount owed by a buyer.

• A credit note is used to apply for a loan from a bank.

• A credit note is a form of payment made to suppliers.

What information is typically found on an invoice?

• Seller and buyer information, invoice number, date, item descriptions, quantities, prices, total amount, payment terms, and taxes.

• Customer feedback and ratings

• Product warranty information

• Shipping address and delivery date

Which document is used to record goods that have been returned?

• Shipping Manifest

• Purchase Order

• Return Merchandise Authorization (RMA) or Return Slip

• Invoice Document

Which of these is NOT an example of a business document in accounting?

• Invoice

• Expense report

• Personal diary

• Balance sheet