Managing Business Transactions Chapter Review Key Terms Checklist Using a pencil, place a¸in each box to indicate how
well you know and understand each Key Term. q I know and understand this Key Term. q I am still a bit uncertain about what this Key Term means. q I don’t understand this Key Term yet. When you revise each chapter, tick the boxes again to indicate how much you have learned.
1. 2.
3. 4. 5.
6. 7. 8.
An enquiry is a request from a buyer to a seller for the price of certain goods.
A quotation is a document sent by the seller to the buyer that shows the price of the goods and the terms and conditions of sale.
Terms and conditions of sale refer to the agreement that will apply to the delivery and payment of the goods or service.
Carriage paid means that the seller will pay for the delivery of the goods to the buyer.
Trade discount is a reduction in the selling price given when the buyer and seller are in the same area of business. It is deducted before VAT is added to the price.
Cash discount is an extra discount given to the buyer if they pay promptly within the stated period of time.
An order is a written request from a buyer to a seller to purchase certain goods.
A delivery docket (or note) lists all the items delivered. When signed, it acts as proof of delivery. A copy is retained by the seller to act as a reminder of the goods sold and proof of delivery.
9.
An invoice is a bill for goods sold on credit. It is sent by the seller to the buyer giving details of the type, quantity and price of products sent, along with terms of sale and details about delivery.
10. 11.
A credit note is a document sent by the seller to the customer that shows a reduction in the amount owed.
A debit note is a document sent by the seller to the customer that shows an increase in the amount owed. It is the opposite of a credit note.
