FINAL EXAMINATION - FINANCIAL ACCOUNTING & REPORTING

Write the letter of your answer for each number.

Details the quantity, specifications, significant dates, buyer, and other important matters with regard to the merchandise being ordered.

a.     Credit Memo

b.     Sales Returns and Allowances

c.     Sales Invoice

d.     Trade Discount

e.     Sales Discounts

f.      Quantity discount

g.     Purchase Order

h.     Purchases discounts

i.      Official Receipt

j.      Billing Statement

Write the letter of your answer for each number.

A formal communication to the buyer reminding him of his purchase and its related credit terms.

a.     Credit Memo

b.     Sales Returns and Allowances

c.     Sales Invoice

d.     Trade Discount

e.     Sales Discounts

f.      Quantity discount

g.     Purchase Order

h.     Purchases discounts

i.      Official Receipt

j.      Billing Statement

Write the letter of your answer for each number.

A notice issued to the buyer informing him that his account, ie. account receivable, has been credited, ie. decreased, due to the merchandise the buyer returns.

a.     Credit Memo

b.     Sales Returns and Allowances

c.     Sales Invoice

d.     Trade Discount

e.     Sales Discounts

f.      Quantity discount

g.     Purchase Order

h.     Purchases discounts

i.      Official Receipt

j.      Billing Statement

Write the letter of your answer for each number.

This is a more formal document confirming the transaction entered into by the seller and the buyer with the needed transaction details such as the trade terms.

a.     Credit Memo

b.     Sales Returns and Allowances

c.     Sales Invoice

d.     Trade Discount

e.     Sales Discounts

f.      Quantity discount

g.     Purchase Order

h.     Purchases discounts

i.      Official Receipt

j.      Billing Statement

Write the letter of your answer for each number.

A document confirming seller's receipt of money from the buyer.

a.     Credit Memo

b.     Sales Returns and Allowances

c.     Sales Invoice

d.     Trade Discount

e.     Sales Discounts

f.      Quantity discount

g.     Purchase Order

h.     Purchases discounts

i.      Official Receipt

j.      Billing Statement

Write the letter of your answer for each number.

Early payment discount offered to customers by the seller.

a.     Credit Memo

b.     Sales Returns and Allowances

c.     Sales Invoice

d.     Trade Discount

e.     Sales Discounts

f.      Quantity discount

g.     Purchase Order

h.     Purchases discounts

i.      Official Receipt

j.      Billing Statement

Write the letter of your answer for each number.

Account where returned merchandise or price adjustments are recorded by the seller.

a.     Credit Memo

b.     Sales Returns and Allowances

c.     Sales Invoice

d.     Trade Discount

e.     Sales Discounts

f.      Quantity discount

g.     Purchase Order

h.     Purchases discounts

i.      Official Receipt

j.      Billing Statement

Write the letter of your answer for each number.

Discounts off the list price offered by wholesalers.

a.     Credit Memo

b.     Sales Returns and Allowances

c.     Sales Invoice

d.     Trade Discount

e.     Sales Discounts

f.      Quantity discount

g.     Purchase Order

h.     Purchases discounts

i.      Official Receipt

j.      Billing Statement

Write the letter of your answer for each number.

This incentive effectively lowers the price per unit, a benefit to buyer. The trade off is to buy in large quantities pushing sales higher, a benefit to the seller.

a.     Credit Memo

b.     Sales Returns and Allowances

c.     Sales Invoice

d.     Trade Discount

e.     Sales Discounts

f.      Quantity discount

g.     Purchase Order

h.     Purchases discounts

i.      Official Receipt

j.      Billing Statement

Write the letter of your answer for each number.

Are reductions in the amount to be paid to the seller within the discount period. It reduces the balance of accounts payable and the net balance of purchases.

a.     Credit Memo

b.     Sales Returns and Allowances

c.     Sales Invoice

d.     Trade Discount

e.     Sales Discounts

f.      Quantity discount

g.     Purchase Order

h.     Purchases discounts

i.      Official Receipt

j.      Billing Statement