1
A person wishing to buy goods will try to find out information about them. He or She will send a __________ to a seller, requesting information such as:
specifications, prices, despacth and delivery arrangemnets, and payment procedures.
Letter of Enquiry
True of False
Carriage Forwards is when the cost of transport is not included in the price and is an extra charge is passed on to the buyer.
TRUE
A __________ is a document acknowledging that a person has received money or property in payment following a sale or other transfer of goods or provision of a service.
A receipt
What is a minimum stock level?
This is the lowest level to which stock is allowed to fall. It is used to safegaurd against running out of stock.
True of False
A statement of account is a list of all goods sold to a customer.
False
This is given to people in a similar trade to the seller to enable them to make a profit in resale.
Trade Discount
Name 3 documents found in a business?
Letter of Enquiry, Advice note, Invoice, Pro forma invoice, Purchasing order, Credit note, Debit note, Statement of account, Requisition, Stock Records.
_______ is part of the capital or assets of the firm.
Stock
Which document is sent in the case where a customer is under charged?
Debit Note
Which document is sent in the case where a customer is over charged?
Credit note
This usually shown as terms on many discounts; it is given to encourage prompt payment.
Cash Discount
After the seller sends a quotation to the buyer the next documentation used by the buyer is called...
Purchase Order
What are the 4 main ways a firm can pay off its debts?
1. Cash 2. Cheque 3. Banker's Draft 4. Online Banking
An Advice note advises the buyer that their order has been ________________
Despatched/ Sent/ On the way
What is a business document?
A business document refers to all documents, reports, contracts, and records related to a particular business. Business documents are essential instruments for decision-making, record-keeping, and communication. They include a wide variety of written resources that support various corporate operations.
Name 4(four) things found on a Purchace Order.
Order #, Name of Seller, Date, Signature, Delivery address, Seller address, Quantity, Description, Unit Price, Buyer contact information.
Name the document used for internal request of inventory
Requisition Form
A________________ is a document that reflects all transactions that took place between you and a particular customer for a given period of time.
Statement of accounts
TRUE OR FALSE
A business plan is considered a business document.
True
TRUE OR FALSE
A contract signed under duress is considered a business document.
FALSE
What is a Quotation?
A quotation is a document that a seller provides to a buyer to offer goods or services at a stated price under specified conditions.
When is an Advice note used?
Advice notes are sent to the buyer ahead of time to inform them that their goods are on the way.
Name 5 things found in the Delivery Note
DN #, date, quantity, description, amount, price, order #, seller address, buyer address.
Name one example of indirect tax charged on purchases.
VAT, ABST, Consumption Tax
In the bottom left corner of an invoice The abriviation of "E & OE" as seen.
What does E & OE stand for?
Errors and Omissions Excepted