Understanding Financial Documents

What are receipts?

• Source documents that prove money has been received

• Documents that show the balance of a bank account

• Invoices for services rendered

• Statements of account activity

What should a receipt specify?

• The amount, name of the other person or business, and date

• The account number and opening balance

• The items purchased and their prices

• The bank charges applied

What is a deposit slip?

• A document completed when depositing money

• A record of bank charges

• A statement of account activity

• An invoice for services rendered

What does a bank statement contain?

• All transactions that occurred in the bank account

• Only the deposits made

• Only the withdrawals made

• The opening balance only

What is a cash invoice used for?

• When a business sells items or provides a service

• To record bank transactions

• To issue bank statements

• To deposit money into a bank account

What is an electronic funds transfer (EFT)?

• The electronic transfer of money over an online network

• A physical transfer of cash between banks

• A method of issuing cash invoices

• A type of bank statement