Test: Business Documents - A Level MCQ

A debit note is issued by a customer to request a decrease in the invoice balance, typically due to damaged goods, incorrect shipments, or missing items.

An invoice is the primary document issued by a seller to a buyer that lists the goods or services supplied, their quantities, and agreed prices. It serves as proof of a credit sale or purchase transaction and legally binds the buyer to pay the seller. A credit note is issued later to amend an invoice, such as for returned goods or allowances, but it is not proof of the original credit sale. Therefore, the correct answer is Invoice.

A statement of account displays all transactions between a customer and supplier within a specified timeframe, including opening balance, purchases, returns, payments, and closing balance.

A paying-in slip is used to deposit cash and/or cheques into a bank account, serving as a record of the deposit transaction.

A bank statement provides a comprehensive record of financial transactions during a specific period, including inflows and outflows of money.

A direct debit is used by businesses to make regular payments through automated bank transfers, allowing for flexibility in payment amounts and dates.

A receipt serves as proof of a cash payment made by a customer, documenting the transaction.

A supplier issues a credit note to a customer to reduce the balance on an invoice, typically for returned goods or adjustments.

A customer would use a debit note to request a reduction in the invoice balance due to damaged goods, incorrect shipments, or missing items.

A cheque counterfoil contains basic details of the cheque issued, such as the payee's name, amount, and date, serving as a record of the payment transaction.