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Business (Trade) Documents

Total questions: 40

Worksheet time: 21mins

Name
Class
Date
1.

Identify the business document.

a)

Invoice

b)

Debit note

c)

Credit note

d)

Receipt

2.

What is a cash discount?

a)

Given to customers who buy in bulk

b)

Given to customers for paying their debts promptly

c)

The price at which the trade usually sells the product

d)

The invoice received by a customer for a credit purchase made

3.

What is a trade discount?

a)

Given to customers who buy in bulk

b)

Given to customers for paying their debts promptly

c)

The price at which the trade usually sells the product

d)

The invoice received by a customer for a credit purchase made

4.

A business has a received an invoice of $63 for purchases made. On the invoice, it is said that the business will received a 2% cash discount if the invoice is paid for by the 31st of August 2020.


How much will the business pay in total if payment is made by the 29th of August 2020?

a)

$63

b)

$1.26

c)

$61.74

d)

$64.74

5.

What is a debit note?

a)

A document issued by a business to the supplier when the goods received are unsuitable.

b)

A document issued by a business to a customer when goods are returned to the business because they are unsuitable.

c)

A document issued to all customers still owing money to the business.

d)

A document issued by a business when making a credit sale.

6.

What is a credit note?

a)

A document issued by a business to the supplier when the goods received are unsuitable.

b)

A document issued by a business to a customer when goods are returned to the business because they are unsuitable.

c)

A document issued to all customers still owing money to the business.

d)

A document issued by a business when making a credit sale.

7.

How will this debit note affect Mr. Johnson's payment in the future?

a)

It will increase by $90

b)

It will increase by $94.50

c)

It will decrease by $90

d)

It will decrease by $94.50

8.

State the rate of trade discount mentioned in the note.

a)

5%

b)

10%

c)

2%

d)

None

9.

What business document is this?

a)

Credit note

b)

Bank statement

c)

Statement of account

d)

Receipt

10.

What business document is this?

a)

Receipt

b)

Bank statement

c)

Paying-in slip

d)

Cheque

11.

The following business document has the acronym COD on it, this means:

a)

There is to be a cop on duty

b)

The customer has to make a call on delivery

c)

The customer has to make a call on delivery

d)

The customer has to pay cash on delivery

12.

Business documents can create clear permanent records of transactions that took place. This can be termed:

a)

Audits

b)

Paper-trail

c)

Receipts

d)

Financial statements

13.

Sent from the buyer to the sell, this document asks 'what goods are available from the potential seller?'

a)

Advice note

b)

Delivery note

c)

Letter of inquiry

d)

Confirmation note

14.

Received from the seller, stating the price for goods and services usually after a request is made by the potential buyer.

a)

Advice note

b)

Delivery note

c)

Quotation

d)

Confirmation note

15.

Acknowledges that the order can be completed and delivered at a certain date.

a)

Advice note

b)

Delivery note

c)

Quotation

d)

Confirmation note

16.

May be sent when the goods have been dispatched so that the customer knows when to expect delivery

a)

Advice note

b)

Delivery note

c)

Quotation

d)

Confirmation note

17.

Sent from a buyer to a supplier with a request for an order.

a)

Requisition

b)

Letter of Inquiry

c)

Invoice

d)

Purchase Order

18.

An internal business document to inform various departments of the need for supplies

a)

Requisition

b)

Letter of Inquiry

c)

Invoice

d)

Purchase Order

19.

Ms. Bruno wants to order markers from the Fable Castle Factory. Which document should be used?

a)

Requisition

b)

Letter of Inquiry

c)

Invoice

d)

Purchase Order

20.

A special type of invoice used for advance payments when buyer and seller are unfamiliar with each other.

a)

Debit note

b)

Credit note

c)

Note of trust

d)

Pro forma Invoice

e)

Invoice

21.

These are documents sent to the buyer with details of goods sold

a)

Requisition

b)

Letter of Inquiry

c)

Invoice

d)

Purchase Order

22.

Sent from the seller to the buyer indicating the buyer’s outstanding balance has been debited or increased.

a)

Debit note

b)

Credit note

c)

Note of trust

d)

Pro forma Invoice

e)

Invoice

23.

Sent from the seller to the buyer indicating the buyer’s outstanding balance has been credited or decreased.

a)

Debit note

b)

Credit note

c)

Note of trust

d)

Pro forma Invoice

e)

Invoice

24.

Sent from the seller to the buyer when the buyer was previously undercharged

a)

Debit note

b)

Credit note

c)

Note of trust

d)

Pro forma Invoice

e)

Invoice

25.

Sent from the seller to the buyer when the buyer was given a discount that was too high.

a)

Debit note

b)

Credit note

c)

Note of trust

d)

Pro forma Invoice

e)

Invoice

26.

Sent from the seller to the buyer when the buyer was previously overcharged

a)

Debit note

b)

Credit note

c)

Note of trust

d)

Return inwards note

e)

Discount coupon

27.

Multiple Answers: Select all the options that pertain to the 'statement of account'.

a)

Shows the amount owed at the beginning of the period

b)

Shows additional deliveries made during the period with invoice number

c)

Shows payments received during the month

d)

Shows amount owed at the end of the month

28.

Used where two companies trade regularly and shows details of transaction occurring over a specific period

a)

Balance Sheet

b)

Credit Note

c)

Debit Note

d)

Statement of Account

e)

Bank Book

29.

What does C.W.O stand for?

(a)  

30.

What is VAT?

(a)  

31.

A Letter of enquiry is received by the...

a)

Buyer

b)

Seller

32.

In a bank statement, if the business has money in its bank account, it will appear as a _______ balance.

a)

debit

b)

credit

33.

Business documents can create clear permanent records of transactions that took place. This can be termed:

a)

Audits

b)

Paper-trail

c)

Receipts

d)

Financial statements

34.

What does CWO stand for?

(a)  

35.

What does E&OE stand for/ mean?

(a)  

36.

------------------ is a booklet which briefly describes the goods stocked by the seller.

(a)  

37.

----------------- is an acknowledgement of a debt

(a)  

38.

7. What is the purpose of printing ‘E. and O.E.’ on an invoice?

a)

A. To enable mistakes to be corrected later by the supplier

b)

B. To ensure that the customer does not alter the figures

c)

C. To give details of cash and trade discounts

d)

D. To show that the supplier has made an error

39.

What does F.O.B stand for?

(a)  

40.

What does C.I.F stand for?

(a)