business documentation

Question 1

why should firms keep a record of business documentations

Answer 1

reduce chances of future disputes with suppliers or customers to avoid confusion

supply evidence to other institutions

detect any frauds by employees

Question 2

flow chart of common buisness documents used in trade

Answer 2

d
l-c-o-i-s-r
c

Question 3

what is a letter of enquiry

Answer 3

initial document sent to supplier by a prospective customer asking for details about a product

Question 4

difference between cash discount and trade discount

Answer 4

cash discounts is given when payment is made on time and transactions is given with cash also frequent customers
trade discount is usually given to business when they purchase large quantities

Question 5

what is a quotation

Answer 5

document that specifies the price for a set of goods and services

Question 6

what will the quaotation give details about

Answer 6

the product and its order or catalogue number
number of units to be supplied
price
transport charges
terms of payment

Question 7

what is an order form

Answer 7

a form used to place an order

Question 8

3 copies of an order form should be available to whom

Answer 8

top copy to supplier

one to stock contoller

one by order department

Question 9

advice note?

Answer 9

formal notice from supplier to a customer that goods have been dispatched

Question 10

delivery note?

Answer 10

written document from the supplier to customer which accompanies the delivery of goods

Question 11

proforma invoice

Answer 11

bill send to buyer when supplier requires payment in advance for delivery

Question 12

invoice

Answer 12

bill sent to buyer by supplier after goods have been dispatched

Question 13

key details recorded on a invoice

Answer 13

quantity supplied
price per unit
total amount owed
invoice number
buyer’s order number
e & oe
terms

Question 14

debit note
credit note

Answer 14

debit note- notes issued to adjust the amounts and increase the amount owed by customer

credit note- adjust the accounts and reduce the amount owed by customers

Question 15

3 times a credit note issused

Answer 15

too much charged for transport

incorrect higher price has been stated on the invoice

faulty or damaged goods returned to supplier

Question 16

3 times a debit note might be issued

Answer 16

seller undercharged buyer

more goods than ordered were dispatched and kept by the buyer

sample goods were sent by supplier and kept by buyer

Question 17

statement of problem?

Answer 17

document that gives total amount owed by a customer issued at the end of the month

Question 18

purchase requisition

Answer 18

a document that expresses request for a specific supply of service of the business

Question 19

stock card

Answer 19

a stock document that lists the available quantity of a particular product

Question 20

bill of lading

Answer 20

document representing title of goods ( sent by ship)

Question 21

airway bill

Answer 21

document used for consignment sent by air

Question 22

import license

Answer 22

government of the importing country gives permission for the import of certain products and certain quantities

Question 23

export license

Answer 23

the governmebt of an exporting country gives permission to export certain products in certain quantites

Question 24

insurance certificate

Answer 24

document that indicates goods being traded are insured

Question 25

certificate of origin

Answer 25

document that indicates the country of origin