/
Business Transaction Documents
Save to my account
Sign up
Business Transaction Documents
FFA lecture 5
Study
1
Question
What are the main types of business transactions?
Answer
Sales, purchases, receipts, payments.
2
Question
What is a purchase order?
Answer
A request from a buyer to order goods or services.
3
Question
What does a delivery note confirm?
Answer
Goods dispatched by the supplier to the customer.
4
Question
What is an invoice used for?
Answer
To demand payment listing goods sold and their prices.
5
Question
What is a credit note?
Answer
A document indicating a reduction due to returned goods or overpayment.
6
Question
What information does a remittance advice contain?
Answer
Details of invoices paid and credit notes offset.
7
Question
How does a petty cash imprest system work?
Answer
Set a limit, use vouchers, refill to the imprest amount.
8
Question
What is the purpose of a delivery note?
Answer
To confirm goods sent to the customer.
9
Question
What is a purchase order?
Answer
A formal document requesting the supplier to deliver specified goods or services.
10
Question
What is a remittance advice?
Answer
A document informing about the details of payments made against invoices and credit notes.
11
Question
What is the purpose of a credit note?
Answer
To credit a customer's account due to returned goods or overpayment.
12
Question
What does a delivery note confirm?
Answer
Dispatch of goods from the supplier to the customer.
13
Question
What documents record a sales transaction?
Answer
Sales invoice or cash receipt.
14
Question
What is the purpose of a statement?
Answer
To summarize all invoices, credit notes, and payments for a customer.
15
Question
What distinguishes a cash sale from a credit sale?
Answer
Immediate payment versus payment at a later date.
16
Question
What does a sales return involve?
Answer
Customer issues a debit note; supplier issues a credit note.
17
Question
What documents are used for a purchase?
Answer
Purchase invoice or receipt.
18
Question
What is a debit note?
Answer
A request for a credit note for goods returned or overpayment.
19
Question
What confirms payment of money?
Answer
A receipt.
20
Question
What is recorded in petty cash book at period end?
Answer
Expenses paid and vouchers for the period.
21
Question
What is the key feature of an imprest petty cash system?
Answer
Replenishing to a fixed amount after expenses.
22
Question
What is the main purpose of a voucher in petty cash?
Answer
To document cash payments and reasons.
23
Question
What is the typical source document for a sale?
Answer
Sales invoice or receipt.
24
Question
How is a petty cash imprest system initialized?
Answer
Set a pre-determined cash limit.
25
Question
If vouchers total $64.50 and remaining cash is $93.50, what is the imprest?
Answer
The imprest amount is $158.
26
Question
How much needs to be reimbursed if $53 of expenses are paid from a $100 imprest?
Answer
$47.
27
Question
What is the purpose of a delivery note?
Answer
To confirm goods sent to the customer.
28
Question
What does a statement in business documentation list?
Answer
All invoices, credit notes, and payments for a customer.
29
Question
What is the function of a receipt?
Answer
To prove that payment has been received.