Purpose of financial Documents
To provide proof of payment
What is the purpose of a receipt?
It must contain at minimum an ABN/ACN, date of sale, details of items and price of items.
What features must a receipt contain?
= Income - expenses
What is the formula for calculating profit?
A document used to verify that a payment has been made.
What is a reciept?
One purpose is to record the amount owing on a transaction.
What is the purpose of a tax invoice?
It usually shows the amount deposited, the account and the date of deposit.
What are the features of a bank deposit slip?
When a business makes money (their income is greater than their expenses)
What is a profit?
The amount (expenses) directly associated with selling goods or services.
What are cost of sales?
To show how much money has been put into the bank on a given occasion.
What is the purpose of a bank deposit slip?
What are the features of an order form?
When the business doesn't make money (their expenses are greater than their income).
What is a loss?
The total amount of money a business or organization earns from selling goods or services to customers before any expenses are subtracted.
What is revenue?
To request a sale or purchase from a business.
What is the purpose of an order form?
There are seven features required.
How many features required on tax invoice (under $1000) in Australia?
Any money that comes into the business, such as from the sale of goods and services.
What is income?
An original document that provides evidence that a business transaction has occurred. EG. Tax invoice
What are source documents?
To compare the business accounting records against bank statements to spot mistakes or fraud.
What is the purpose of a bank reconciliation?
The details of the seller are required on top of the seven other features.
What is required on a tax invoice when the sale is over $1000?
Any costs a business needs to pay for such as rent, electricity etc.
What are expenses?
A document used to record, track, or verify the movement of cash resulting from transactions. EG. A receipt
What is a cash record?