Understanding Business Documents

What is a trade discount?

• A deduction on the list price.

• A discount for prompt payment.

• A document sent when goods are sold on credit.

• A document sent when returning goods.

What is a cash discount?

• A deduction on the list price.

• A discount for prompt payment.

• A document sent when goods are sold on credit.

• A document sent when returning goods.

What is an invoice?

• Document sent when goods are sold on credit.

• Document sent when returning goods.

• Document sent when goods are returned.

• Document which shows summary of the customer’s transactions.

What is a debit note?

• Document sent when returning goods.

• Document sent when goods are sold on credit.

• Document sent when goods are returned.

• Document which shows summary of the customer’s transactions.

What is a credit note?

• Document sent when goods are returned.

• Document sent when returning goods.

• Document sent when goods are sold on credit.

• Document which shows summary of the customer’s transactions.

What is a statement of account?

• Document which shows summary of the customer’s transactions.

• Document sent when goods are sold on credit.

• Document sent when returning goods.

• Document sent when goods are returned.

What is a cheque?

• Order to a bank to pay a stated sum.

• Document sent when goods are sold on credit.

• Document sent when returning goods.

• Document which shows summary of the customer’s transactions.

What is a pay in slip?

• Document when cheque/cash is deposited in the bank.

• Document sent when goods are sold on credit.

• Document sent when returning goods.

• Document which shows summary of the customer’s transactions.

What is a bank statement?

• Document that summarises all the transactions in the business’ bank account.

• Document sent when goods are sold on credit.

• Document sent when returning goods.

• Document which shows summary of the customer’s transactions.

What are receipts?

• Document sent when cash/cheque is received by the business.

• Document sent when goods are sold on credit.

• Document sent when returning goods.

• Document which shows summary of the customer’s transactions.