Topic 2 - Types of Financial Documents

Activity and Task Shortcut Bar 

(please read the material below before attempting the activity)

Task 2

Task 3

  Activity C

Financial Documents follow the flow of cash in and out of a business. This is called cash flow

Go to Task 2

 

The Document Cycle

The purchase of goods from a business requires the preparation and the use of several financial documents. These form the document cycle. It is important to understand the purpose of each document and where it fits into the document cycle.

Purchase order (when goods are required)

Delivery Docket sent with the goods, does not include price

Purchase Invoice sent to the purchaser setting out the amount owing

Credit note - purchases given if stock is returned or customers overcharged

Remittance Advice details the transaction and covers the cheque sent with the payment

Cheque/EFTPOS payment

Receipt send to customer, proof of payment

 

Go to  Task 3

 

Now try Activity C

This is the end of Topic 2.  Now try Topic 3