Business Documents (Copy)
Topic 2.2: Business Documents – Quiz
O Level and IGCSE Accounting
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
1. What is the main purpose of an invoice?
A. To inform about future purchases
B. To request payment from a buyer
C. To confirm goods have been delivered
D. To show bank charges
2. What does a credit note indicate?
A. An amount owed by the customer
B. A discount allowed to the supplier
C. A reduction in the amount owed by the buyer
D. A payment made to the bank
3. Which document is used to notify a supplier of an overcharge?
A. Credit note
B. Statement of account
C. Debit note
D. Receipt
4. What is the purpose of a statement of account?
A. To demand payment
B. To show the buyer the total balance owed over a period
C. To cancel an invoice
D. To explain bank charges
5. A receipt is issued when:
A. Goods are returned
B. Cash is received
C. Payment is delayed
D. Discount is given
6. What is a debit note?
A. A document sent to the customer for returned goods
B. A document from the buyer to request a reduction in amount payable
C. A confirmation of cheque payment
D. A cash summary
7. Which of the following is a source document used to record money received from customers?
A. Cheque counterfoil
B. Paying-in slip
C. Receipt
D. Credit note
8. A cheque is:
A. A document confirming order placement
B. A written instruction to a bank to pay a stated amount
C. A record of total sales
D. A proof of delivery
9. What is a paying-in slip used for?
A. Recording payments made
B. Transferring money between suppliers
C. Depositing money into a bank account
D. Returning goods
10. A cheque counterfoil is used to:
A. Record goods sold
B. Record details of a cheque issued
C. Record inventory received
D. Confirm payment has been made by bank
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
11. Which document is matched to goods returned by the buyer?
A. Debit note
B. Invoice
C. Statement
D. Receipt
12. What does a bank statement show?
A. Only money deposited
B. All transactions in the business ledger
C. Summary of all transactions in the business bank account
D. Employee payments only
13. In which document would you expect to find the terms “net”, “gross”, and “discount”?
A. Credit note
B. Invoice
C. Statement
D. Receipt
14. What does the term “pro-forma invoice” refer to?
A. Final bill to be paid
B. Duplicate of the original invoice
C. An estimate or quotation before goods are supplied
D. A receipt for payment
15. A business pays its supplier by cheque. Which two documents will be updated?
A. Invoice and bank statement
B. Bank statement and cheque counterfoil
C. Debit note and receipt
D. Receipt and credit note
16. What is the main difference between an invoice and a statement of account?
A. Invoice is sent after statement
B. Statement shows a list of all invoices
C. Invoice is only for goods returned
D. Statement is sent before invoice
17. Which document is proof that payment has been made?
A. Invoice
B. Credit note
C. Receipt
D. Debit note
18. Which of the following documents is issued by the buyer?
A. Invoice
B. Credit note
C. Debit note
D. Statement of account
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
19. Why is a paying-in slip important to a business?
A. It is used to confirm money has been received by the customer
B. It proves cash has been paid into the bank
C. It authorises employee salaries
D. It checks stock availability
20. What does a credit note reduce?
A. Total sales
B. Gross profit
C. Amount owed by the customer
D. Supplier’s payment
21. When are credit notes typically issued?
A. When goods are sold
B. When goods are returned
C. When rent is due
D. When cash is paid
22. A cheque counterfoil would NOT show:
A. The date of the cheque
B. The amount paid
C. The name of the payee
D. The bank’s balance
23. What does a bank statement help with?
A. Preparing customer invoices
B. Verifying bank transactions
C. Checking inventory levels
D. Approving credit terms
24. What is entered in the receipt book?
A. Payments to suppliers
B. Receipts of cash and cheques from customers
C. All employee salaries
D. Bank deposits only
25. Which document is used to correct an overcharge on a previous invoice?
A. Statement
B. Credit note
C. Receipt
D. Cheque counterfoil
26. What kind of document is a cheque?
A. Source document
B. Ledger entry
C. Journal
D. Memorandum
27. Which document is used to complete the cash book on the payments side?
A. Debit note
B. Cheque counterfoil
C. Invoice
D. Credit note
28. Who issues the invoice?
A. Buyer
B. Supplier (Seller)
C. Bank
D. Employee
29. A debit note issued by the buyer means:
A. The buyer has overcharged the seller
B. The buyer is requesting a refund
C. The seller must make payment
D. The buyer has underpaid
30. A bank statement is a record of:
A. Purchases made
B. Transactions conducted through the business’s bank account
C. Only credits into the business
D. Staff salaries and expenses
Answer key and explanations
Topic 2.2 – Business Documents
O Level and IGCSE Accounting
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
1. Correct Answer: B
Explanation: An invoice is a document issued by the seller to request payment from the buyer.
2. Correct Answer: C
Explanation: A credit note reduces the amount owed by the buyer due to returns or overcharges.
3. Correct Answer: C
Explanation: A debit note is issued by the buyer to notify the supplier of an overcharge or return of goods.
4. Correct Answer: B
Explanation: A statement of account is a summary showing the total amount the buyer owes over a specific period.
5. Correct Answer: B
Explanation: A receipt confirms that cash or cheque has been received by the seller.
6. Correct Answer: B
Explanation: A debit note is sent by the buyer to the seller requesting a reduction in the amount payable.
7. Correct Answer: C
Explanation: A receipt confirms the money received and serves as a source document for cash received.
8. Correct Answer: B
Explanation: A cheque is a written order instructing a bank to pay a specific amount to a named person or business.
9. Correct Answer: C
Explanation: A paying-in slip is used when depositing cash or cheques into a bank account.
10. Correct Answer: B
Explanation: A cheque counterfoil records the details of the cheque issued such as date, amount, and recipient.
11. Correct Answer: A
Explanation: A debit note is issued when the buyer returns goods to the seller.
12. Correct Answer: C
Explanation: A bank statement is a document sent by the bank showing all transactions related to the business account.
13. Correct Answer: B
Explanation: An invoice typically includes gross amount, discounts, and net payable.
14. Correct Answer: C
Explanation: A pro-forma invoice is a quotation sent before supplying goods to indicate estimated costs.
15. Correct Answer: B
Explanation: Both the cheque counterfoil and bank statement will reflect the payment made by cheque.
16. Correct Answer: B
Explanation: A statement of account summarizes all invoices, credit notes, and payments made.
17. Correct Answer: C
Explanation: A receipt is issued to acknowledge that payment has been made.
18. Correct Answer: C
Explanation: The buyer issues a debit note to the seller to request a reduction in the amount payable.
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
19. Correct Answer: B
Explanation: A paying-in slip provides evidence that money was deposited into the business’s bank account.
20. Correct Answer: C
Explanation: A credit note reduces the amount the customer owes to the business.
21. Correct Answer: B
Explanation: Credit notes are issued when customers return goods or are overcharged.
22. Correct Answer: D
Explanation: A cheque counterfoil does not show the bank’s balance—it records cheque details only.
23. Correct Answer: B
Explanation: A bank statement helps in reconciling cash book with bank records and verifying transactions.
24. Correct Answer: B
Explanation: The receipt book is used to record all cash and cheque receipts from customers.
25. Correct Answer: B
Explanation: A credit note corrects overcharges or returns and adjusts the buyer’s outstanding balance.
26. Correct Answer: A
Explanation: A cheque is a source document as it provides proof of a financial transaction.
27. Correct Answer: B
Explanation: Cheque counterfoils are used as source documents for recording payments in the cash book.
28. Correct Answer: B
Explanation: The seller issues the invoice to the buyer after goods or services are sold.
29. Correct Answer: B
Explanation: A debit note from the buyer requests a refund or adjustment from the seller due to returns or overcharges.
30. Correct Answer: B
Explanation: A bank statement shows all financial transactions processed through the business’s bank account.
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course