Business documents

Identify the business document.

• Invoice

• Debit note

• Credit note

• Receipt

What is a cash discount?

• Given to customers who buy in bulk

• Given to customers for paying their debts promptly

• The price at which the trade usually sells the product

• The invoice received by a customer for a credit purchase made

What is a trade discount?

• Given to customers who buy in bulk

• Given to customers for paying their debts promptly

• The price at which the trade usually sells the product

• The invoice received by a customer for a credit purchase made

A business has a received an invoice of $63 for purchases made. On the invoice, it is said that the business will received a 2% cash discount if the invoice is paid for by the 31st of August 2020.

How much will the business pay in total if payment is made by the 29th of August 2020?

• $63

• $1.26

• $61.74

• $64.74

What is a debit note?

• A document issued by a business to the supplier when the goods received are unsuitable.

• A document issued by a business to a customer when goods are returned to the business because they are unsuitable.

• A document issued to all customers still owing money to the business.

• A document issued by a business when making a credit sale.

What is a credit note?

• A document issued by a business to the supplier when the goods received are unsuitable.

• A document issued by a business to a customer when goods are returned to the business because they are unsuitable.

• A document issued to all customers still owing money to the business.

• A document issued by a business when making a credit sale.

How will this debit note affect Mr. Johnson's payment in the future?

• It will increase by $90

• It will increase by $94.50

• It will decrease by $90

• It will decrease by $94.50

State the rate of trade discount mentioned in the note.

• 5%

• 10%

• 2%

• None

What business document is this?

• Credit note

• Bank statement

• Statement of account

• Receipt

What business document is this?

• Receipt

• Bank statement

• Paying-in slip

• Cheque