Chapter One- Business Documentation

Question 1

Capital

Answer 1

The amount of money invested by the owner in the business

Question 2

Cash

Answer 2

Amounts of cash held physically by the business as notes and coin, usually as a result of making cash sales, pending banking

Question 3

Cash Sales

Answer 3

Sales that are made for immediate payment by cash, cheque, credit or debit card

Question 4

Coding Systems

Answer 4

Used to ensure accuracy of filing and recording

Question 5

Credit Note

Answer 5

A document issued to a customer who returns goods, showing the details of the goods returned and their value

Question 6

Customer Code

Answer 6

A unique code given to a customer by a supplier when recording transactions that relate to that customer

Question 7

Customer Order

Answer 7

Sent from the customer to the supplier confirming the required purchase

Question 8

Delivery Note

Answer 8

Document sent to the customer with the items being despatched, which must be signed by the customer confirming the receipt of the items

Question 9

Document Number

Answer 9

The unique number allocated from a sequence to a particular document as part of the business’ coding system

Question 10

Invoice

Answer 10

A document issued by the seller to the purchaser of goods on credit showing the details of goods sold, the amount due and the date of payment

Question 11

Limited Liability Company

Answer 11

A business that is owned by shareholders and managed by directors, who are not necessarily the same people. The debts of the business and the personal debts of the owners (shareholders) are legally separate

Question 12

Owner

Answer 12

The person who invested money in the business

Question 13

Partnership

Answer 13

A business that is jointly owned and managed by two or more individuals

Question 14

Petty Cash

Answer 14

Small amounts of cash held physically within the business and used to make small payments

Question 15

Petty Cash Voucher

Answer 15

A document that records payments out of petty cash

Question 16

Price List

Answer 16

Written confirmation from a supplier as to the price of goods

Question 17

Product Code

Answer 17

A unique code given to a product by a supplier or customer to help in recording transactions involving that product

Question 18

Profit

Answer 18

The excess of income over expenses made by a business

Question 19

Quotation

Answer 19

A written statement sent from the supplier to customer advising them of the price of a specific good or service (or a combination of the two)

Question 20

Remittance Advice Note

Answer 20

A document sent with payment setting out which amounts are being paid and whether any credit notes are being applied

Question 21

Sales Income

Answer 21

What the business earns when it makes sales of goods or services to other parties; can also be called ‘revenue’ or ‘sales revenue’

Question 22

Sole Trader

Answer 22

A business that is owned and managed by an individual

Question 23

Supplier Code

Answer 23

A unique code given to a supplier by a customer when recording transactions that relate to that supplier

Question 24

Till receipt

Answer 24

The primary documentation for a sale or purchase in cash