SELF TEST QUESTIONS

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What is an advice note?

2 Explain the purpose of a receipt.

3 What is the difference between an estimate and a quotation?

4 What is the difference between a dispatch note and a delivery note?

5 Give two examples of when a cheque requisition form would be used.

6 State the purpose of a credit limit.

7 Give four items that would appear in a sales invoice.

8 What is the difference between a purchase requisition and a purchase order?

9 What are the benefits of using a goods received note?

10 Explain the main features of a purchase invoice.

11 What is a debit note?

12 Draw up a petty cash voucher.

13 Why should a business have policies for the retention of documents?

14 What are the main data protection principles?

1 The types of documentation that may accompany a complex transaction for a machine includes three of the following. Which is the odd one out?

A Invoice for outstanding amount from manufacturer

B Initial enquiry letter from manufacturer

C Price quotation for machinery from manufacturer

D Deposit remittance from purchaser

2 Which of the following does not contain any monetary amounts?

A Delivery note

B Quotation

C

D

Payslip

Receipt

3 Which of the following lists is in the correct chronological order?

A Sign petty cash voucher, spend money, obtain receipt, authorise voucher

B Quotation, purchase order, purchase invoice, cheque requisition

C Invoice, credit note, debit note, delivery note, remittance advice

D Receipt, purchase invoice, statement, despatch note

4 Which document is used by a supplier to correct an earlier overcharge?

A Advice note

B Credit note

C Debit note

D Invoice

5 From the following list of situations where an invoice has been issued, choose one that would not require a credit note to be raised:

A A customer has returned some or all of the goods because they are damaged or faulty.

B A customer has returned some or all of the goods because they are not the items ordered.

C A customer has never received the goods although an invoice was issued.

D Postage and packaging charges were omitted from the original invoice.

6 Which of the following describes a goods received note?

A It is a formal request, sent by a business to a supplier requesting the delivery of the goods specified on the purchase order.

B It is an internal check document that serves as a record of the quantity and condition of goods that have been delivered to the business.

C It is a discount that is offered to a customer if the invoice is paid by a certain date.

D It is a means of identifying a transaction as being of a particular type by allocating to it an appropriate reference number.

7 Which of the following documents would not be entered in the accounting records after it has been raised?

A A credit note

B A debit note

C

A quotation

D A payslip