L03 Flashcards
(11 cards)
Name different business documents
Cash on delivery Errors and omissions excepted Terms and conditions Purchase order Invoice Credit note Statement of account Petty cash Requisition form Expense claim form
What is a requisition form
This is when a company needs to purchase goods for relevant use.
What is a budget variance report
This is the difference between budgeted income and expenditure and the actual income and expenditure figures.
What is the difference between a favourable variance and an adverse variance.
Favourable variance- This is when the actual figure is better than budgeted figures
Adverse variance-This is when the actual figure is worse than budgeted figures.
What is a remittance advice?
This is a notification sent by a customer to a supplier informing them that their invoice has been paid.
Name different payment methods
Cheque Credit card Debit card Direct debit Standing order Online payment
What is a standing order
This is an instruction given by an account holder to the bank to pay a specific amount to another account on a regular basis. E.g a monthly gym fee
What are minutes in a meeting document?
This is the summary of what is discussed and agreed in the business meeting which is distributed to all the attendees.
The disadvantages of using a cheque
- They need to be signed by two people so they can be time consuming
- Can be inconvenient as it has to be handed in at the bank
Advantages of using credit cards
- Payment can be made even if insufficient funds are in the payers bank account
- Payments can be made quick and easily online.
Disadvantages of using a debit card
- Some businesses charge an additional fee to the customer if paying by debit card
- Fraud is a growing issue when using debit cards
- Payees must pay a processing fee
