financial documents

Question 1

why do many enterprise use a range of financial documents throughout the buying and selling process?

Answer 1

to record the sale and purchase of goods and services

Question 2

what is the order of as common financial document? (6)

Answer 2

1. purchase order
2. delivery note and goods received note
3. invoice
4. receipt
5. credit note
6. statement of account

Question 3

purchase order:
what will a purchase order be completed by?

Answer 3

the buyer (customer)

Question 4

purchase order:
what will be from the supplier?

Answer 4

a legal offer to buy goods

Question 5

purchase order:
what is included to list items as it is required?

Answer 5

price being agreed and quantity

Question 6

purchase order:
who will it be sent to?

Answer 6

supplier requesting products

Question 7

delivery note and goods received note:
who is this completed by?

Answer 7

supplier

Question 8

delivery note and goods received note:
who is it sent to when goods are delivered?

Answer 8

customer

Question 9

delivery note and goods received note:
what does it list details about?

Answer 9

the order including contents of delivery

Question 10

delivery note and goods received note:
what does it list any goods not supplied?

Answer 10

with reasons for non-delivery

Question 11

delivery note and goods received note:
why is it used by customers?

Answer 11

to check that goods delivered match goods requested on purchase order

Question 12

delivery note and goods received note:
why are goods received notes completed by the customer’s business?

Answer 12

to acknowledge that the products have been delivered within the enterprise usually to able to update their stock records

Question 13

good received note:
who is it completed by? why?

Answer 13

customer business to acknowledge that the products have been received

Question 14

good received note:
what is it used to keep?

Answer 14

their own stock records updated

Question 15

invoice and remittance advice slip:
who is it completed by?

Answer 15

supplier

Question 16

invoice and remittance advice slip:
how do they request for payment?

Answer 16

sent to customer, either on receipt of goods or shortly after

Question 17

invoice and remittance advice slip:
what does it list? (3)

Answer 17

price of goods delivered
delivery charges
amount owned to supplier

Question 18

invoice and remittance advice slip:
why does it state date?

Answer 18

by which money must be paid

Question 19

invoice and remittance advice slip:
how does it explain how to pay?

Answer 19

for example, by bank transfer

Question 20

invoice and remittance advice slip:
what are the remittance advice slips?

Answer 20

sent by a customer to the supplier to acknowledge that they have paid an invoice

Question 21

receipt:
who is it completed and sent to?

Answer 21

completed by supplier
sent to customer

Question 22

receipt:
what is made by the customer?

Answer 22

a record of payment

Question 23

receipt:
when is it rarely used?

Answer 23

when enterprises sell goods on credit

Question 24

credit note:
who is it completed and sent to?

Answer 24

completed by supplier
sent to customer

Question 25

credit note: what does it list?

Answer 25

any goods that may have been returned by the customer

Question 26

credit note: what does it confirm?

Answer 26

money refunded to customer

Question 27

credit note: what can it be used against?

Answer 27

the purchase of other goods by customer in the future

Question 28

statement of account: who is it completed and sent to?

Answer 28

completed by supplier sent to customer

Question 29

statement of account: what is it?

Answer 29

a financial summary of the foods ordered, purchased or returned by the customer over a period time

Question 30

statement of account: what is it usually a?

Answer 30

usually a month

Question 31

statement of account: what do some enterprises do after receiving the statement?

Answer 31

pay their invoices