Tag: business organisation

Questions Related to business organisation

A document which mentions the type of goods and quantity of goods is ___________.

business organisation mercantile agents and account sales course of business transaction in home trade documents and procedure used in home trade home trade: agents and procedures

  1. invoice

  2. performa Invoice

  3. delivery challan

  4. order book

Show answer
Correct Option: C

Credit note is sent from seller to buyer for __________.

business organisation mercantile agents and account sales course of business transaction in home trade documents and procedure used in home trade home trade: agents and procedures

  1. undercharge

  2. complete charge

  3. partial charge

  4. overcharge

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Correct Option: D

_________ is neither entered into book of accounts nor charged to the account of the recipients.

business organisation mercantile agents and account sales course of business transaction in home trade documents and procedure used in home trade home trade: agents and procedures

  1. Delivery Challan

  2. Invoice

  3. Credit/ Debit Note

  4. Proforma Invoice

Show answer
Correct Option: D
Explanation:

An abridged or estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. It notes the kind and quantity of goods, their value, and other important information such as weight and transportation charges. Proforma invoices are commonly used as preliminary invoices with a quotation, or for customs purposes in import. They differ from a normal invoice in not being a demand or request for payment.

Hence transaction merely with the proforma invoice as supporting document is neither entered into book of accounts nor will any charge be made to the account of the recipients.

To rectify an overcharge made by a seller from buyers account, ___________ is sent.

business organisation mercantile agents and account sales course of business transaction in home trade documents and procedure used in home trade home trade: agents and procedures

  1. credit note

  2. debit note

  3. debenture

  4. none of the above

Show answer
Correct Option: A
Explanation:

Credit note is a document that informs the receiver that the receiver's account is credited by the sender with the amount specified on the note.

Credit note is sent to the buyer in the following cases:
  • The seller, by mistake, had overcharged the buyer
  • The seller receives faulty goods from the buyer

When goods are returned by the customer, which one of the following is issued to the customer for the value of goods returned?

business organisation mercantile agents and account sales course of business transaction in home trade documents and procedure used in home trade home trade: agents and procedures

  1. Debit Note

  2. Performa Invoice

  3. Invoice

  4. Credit Note

Show answer
Correct Option: D

Which one of the following documents is issued by the seller when goods are returned by the customer?

business organisation mercantile agents and account sales course of business transaction in home trade documents and procedure used in home trade home trade: agents and procedures

  1. Invoice

  2. Supplementary Invoice

  3. Proforma Invoice

  4. Credit Note

Show answer
Correct Option: D
Explanation:

A credit note is a document issued by seller of goods to customers who return goods which can be offset in future purchase.

_______ is a document giving full details of goods being sold and may treated as document showing title by the buyer.

business organisation mercantile agents and account sales course of business transaction in home trade documents and procedure used in home trade home trade: agents and procedures

  1. Proforma Invoice

  2. Statement of Account

  3. Invoice

  4. Credit/Debit Notes

Show answer
Correct Option: C
Explanation:

An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer. Payment terms are usually stated on the invoice.

________ is sent to the other party periodically showing the opening balance, details of transactions and the closing balance.

business organisation mercantile agents and account sales course of business transaction in home trade documents and procedure used in home trade home trade: agents and procedures

  1. Proforma Invoice

  2. Statement of Account

  3. Invoice

  4. Credit/Debit Notes

Show answer
Correct Option: B
Explanation:

A statement of account is a detailed report of the contents of an account. An example is a statement sent to a customer, showing billings to and payments from the customer during a specific time period, resulting in an ending balance. 

The net remaining balance of all transactions listed. A bank statement or account statement is a summary of financial transactions which have occurred over a given period on a bank account held by a person or business with a financial institution.

Which of the following is not related to "Bank Correspondence"?

business organisation mercantile agents and account sales course of business transaction in home trade documents and procedure used in home trade home trade: agents and procedures

  1. A letter for change of signatories

  2. A letter for stop payment

  3. Reminder letter for balance due

  4. A letter for increasing overdraft limits

Show answer
Correct Option: C
Explanation:

A correspondent bank is a bank that provides services on behalf of another, equal or unequal, financial institution. It can facilitate wire transfers, conduct business transactions, accept deposits, and gather documents on behalf of another financial institution.

Banking Correspondence in Business Communication. Correspondence with banks is essential for organizations. Banks also are business houses and they have to correspond with clients and customers. Banks whether Private or Public, Local or Foreign, have to face stiff competition from others.

It is advisable to send a copy of the statement of account showing arrears of payment to the companies before sending the collection letter.

business organisation mercantile agents and account sales course of business transaction in home trade documents and procedure used in home trade home trade: agents and procedures

  1. True

  2. False

  3. Partly true

  4. None of above

Show answer
Correct Option: A
Explanation:

Written notification of the pending amounts, meant to prod past-due customers to make a payment. Collection letters are sent usually one after another, with the tone and language getting more direct with each successive letter, until at least some payment is received. Also called dunning letter.