FABM 2

Question 1

are used to document
business transactions

Answer 1

Business forms

Question 2

The contents of the form give the
reader an understanding of the various
aspects of the transactions such as

Answer 2

(1) quality and quantity
of merchandise requested, ordered,
or delivered;
(2) price agreed upon for the
merchandise;
(3) The person who prepared the form
and;
(4) officers who authorized the
transaction.

Question 3

These are used only within the company

Answer 3

INTERNAL BUSINESS FORMS

Question 4

These forms may be used on the side of the seller only or the buyer only

Answer 4

INTERNAL BUSINESS FORMS

Question 5

document the accountability of the personnel on the transactions
that occur

Answer 5

INTERNAL BUSINESS FORMS

Question 6

 The forms intend to answer the following questions:
1. What are the particulars requested on the form?
2. Who initiated the transaction?
3. Who determined the correctness of the information on the form?
4. Who gave the final authorization to implement the transaction?

Answer 6

INTERNAL BUSINESS FORMS

Question 7

is an internal report prepared by the buyer’s personnel in charge of receiving
deliveries.

Answer 7

Receiving report

Question 8

It is used to document the quality and quantity of items received by the personnel from the suppliers

Answer 8

Receiving report

Question 9

Most companies process
payments through a _________________

Answer 9

voucher
system.

Question 10

Payments are made by
__________. A _____________ (CV)
is prepared for each check.

Answer 10

check, check voucher

Question 11

It documents the process for
the preparation, verification,
and authorization of check
payments.

Answer 11

check voucher

Question 12

The_____________
includes the CV and the
supporting documents such
as the ___________

Answer 12

check voucher package, supplier’s bill invoice, or
statement of account

Question 13

are also pre

-numbered

and should be used
sequentially

Answer 13

check voucher package

Question 14

are used by both the buyer and the seller or inside and outside the
company

Answer 14

EXTERNAL BUSINESS FORMS

Question 15

 Are filled out by both parties

Answer 15

EXTERNAL BUSINESS FORMS

Question 16

These forms evidenced the occurrence of a stage of the transaction.

Answer 16

EXTERNAL BUSINESS FORMS

Question 17

Below are some of the business forms for discussions:
1. Purchase order
2. Delivery Receipt
3. Sales Invoice
4. Provisional Receipt
5. Official Receipt
6. Bills and Statement of Account

Answer 17

EXTERNAL BUSINESS FORMS

Question 18

is a form used by the buyer to communicate his
exact orders to the seller.

Answer 18

Purchase Order

Question 19

The quality specifications and quantity ordered is
indicated on the form.

Answer 19

Purchase Order

Question 20

issued by the buyer is approved by the
appropriate office.

Answer 20

A valid PO issued

Question 21

The buyer is required to accept the delivery of the
ordered merchandise as long as it meets the
specifications on the __________

Answer 21

PO

Question 22

The_____________ signifies his
commitment to making delivery within the specified
period

Answer 22

Seller’s acceptance of the PO

Question 23

is evidence of delivery,
issued by the seller

Answer 23

Delivery Receipt

Question 24

The form indicates information on the quality
and quantity of items delivered.

Answer 24

Delivery Receipt

Question 25

The DR is signed by the ________ to indicate that the quantity of the items listed had been received.

Answer 25

buyer

Question 26

One copy signed by the buyer is taken back to the ________

Answer 26

seller’s accounting department.

Question 27

One copy is given to the ____.

Answer 27

buyer

Question 28

is a communication from the seller to the buyer.

Answer 28

Sales Invoice

Question 29

It documents the amount of payment that the seller is claiming

Answer 29

Sales Invoice

Question 30

approved sales invoice format includes a breakdown of VAT computation.

Answer 30

The Bureau of Internal Revenue (BIR)

Question 31

is computed based on the VAT-inclusive selling price, referred to as gross price, divided by 1.12.

Answer 31

Net sales

Question 32

are evidence of payment. Therefore, a buyer who claims that an account has been settled must be able to show an official receipt.

Answer 32

Official Receipt

Question 33

The BIR has an approved format of the _________

Answer 33

Official Receipt

Question 34

does not constitute the final settlement of accounts until the buyer's bank honors the check

Answer 34

check payment

Question 35

Some sellers choose to initially issue a __________________ pending clearance of the check issued as payment.

Answer 35

provisional receipt (PR)

Question 36

The seller will issue the ___________ when the check has been cleared by the bank.

Answer 36

OR

Question 37

is prepared by the seller and submitted to the buyer

Answer 37

Billing Statement

Question 38

lists down the seller's transactions with the buyer over a specific period, normally one month.

Answer 38

Billing Statement

Question 39

The seller is basically telling the buyer:

Answer 39

a) their sales transactions are identified by sales invoices and b) payments they received are identified by the official receipts.

Question 40

Also, a _______________ is a reminder to the buyer of the amount he owes to the seller.

Answer 40

Statement of Account or Billing Statement

Question 41

The BIR also has an approved format for the ____________

Answer 41

Statement of Account or Billing Statement

Question 42

FLOW OF BUSINESS FORMS: PURCHASE REQUEST TO THE DELIVERY RECEIPT (Buyer 1)

Answer 42

QUOTATIONS, PR, PO, A-PO, A-PO

Question 43

FLOW OF BUSINESS FORMS: PURCHASE REQUEST TO THE DELIVERY RECEIPT (Seller 1)

Answer 43

A-PO, DR, DR, Merchandise, DR

Question 44

FLOW OF BUSINESS FORMS: PURCHASE REQUEST TO THE DELIVERY RECEIPT (Buyer 2)

Answer 44

Merchandise, DR, DR, DR

Question 45

FLOW OF BUSINESS FORMS: DELIVERY RECEIPT TO SALES INVOICE (Buyer 1)

Answer 45

Receiving Report (RR)

Question 46

FLOW OF BUSINESS FORMS: DELIVERY RECEIPT TO SALES INVOICE BUYER – ACCOUNTING DEPARTMENT

Answer 46

A-PO, RR, PR, SALES INVOICE

Question 47

FLOW OF BUSINESS FORMS: DELIVERY RECEIPT TO SALES INVOICE SELLER

Answer 47

DR, SALES INVOICE

Question 48

FLOW OF BUSINESS FORMS: SALES INVOICE TO OFFICIAL RECEIPT BUYER – ACCOUNTING DEPARTMENT #2

Answer 48

CHECK, PROVISIONAL RECEIPT, OFFICIAL RECEIPT

Question 49

FLOW OF BUSINESS FORMS: SALES INVOICE TO OFFICIAL RECEIPT SELLER #2

Answer 49

CHECK, PROVISIONAL RECEIPT, Bank Statement, Official Receipt

Question 50

FLOW OF BUSINESS FORMS: SALES INVOICE TO OFFICIAL BANK

Answer 50

CHECK, Bank Statement