Introduction to Bookkeeping so far

What is the purpose of accounting?

• To record and classify business transactions

• To manage business expenses

• To create financial statements

• To calculate taxes

What is the typical flow of a credit transaction?

• Customer requests details, purchase order, delivery note, invoice

• Customer requests details, quotation, sales order, delivery note

• Customer requests details, sales order, delivery note, invoice

• Customer requests details, quotation, purchase order, invoice

What is a quotation?

• A document that authorizes a purchase transaction

• A document that confirms a customer's order

• A document that itemizes a transaction between a buyer and a seller

• A document that provides a price quote for goods or services

What is a purchase order?

• A document that authorizes a purchase transaction

• A document that confirms a customer's order

• A document that itemizes a transaction between a buyer and a seller

• A document that provides a price quote for goods or services

What is a sales order?

• A document that authorizes a purchase transaction

• A document that confirms a customer's order

• A document that itemizes a transaction between a buyer and a seller

• A document that provides a price quote for goods or services

What is a delivery note?

• A document that authorizes a purchase transaction

• A document that confirms a customer's order

• A document that accompanies goods despatched to a customer

• A document that provides a price quote for goods or services

What is an invoice?

• A document that authorizes a purchase transaction

• A document that confirms a customer's order

• A document that accompanies goods despatched to a customer

• A document that itemizes a transaction between a buyer and a seller

How is VAT calculated?

• Net × VAT rate

• Gross × VAT rate

• VAT from Net = Net × (VAT rate / 100)

• VAT from Gross = Gross × (VAT rate / (100 + VAT rate))

What is the purpose of a credit note?

• To cancel part or all of a sales invoice

• To issue a refund for short deliveries

• To settle a dispute with a customer

• To qualify for a prompt payment discount

What is a goods returned note?

• A document sent to the supplier by the customer detailing the goods returned and reason(s) for the return

• A document issued by a supplier to a customer cancelling part or all of a sales invoice

• A document sent to the customer by the supplier detailing the goods received and reason(s) for the delivery

• A document issued by a customer to a supplier requesting a refund for faulty or damaged goods