Unit 4: The Accounting Cycle

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Invoices:

-Normally relate to credit transactions.

-Lists goods or services provided and their prices.

-Suppliers normally send an invoice with goods (or once services have been delivered).

-Indicate payment terms.

-"Bills"

Source Documents:

-First document that exists relating to a transaction.

Evidence of the transaction taking place.

-Includes date and time.

-Types:

-Invoice.

-Receipt.

-Deposit Slip

-Check Counterfoil

-Statement

-Payment Confirmation.

Receipts:

-Confirm that goods or services have been received.

-Normally relate to cash transactions.

Deposit Slip:

-Proof that cash has been deposited in a bank account.

Check Counterfoil

-The part of the check kept by the drawer (writer) of the check as a record of the transaction.

Statement:

-A report showing:

-The amount owed by one business to another.

-Details of transactions between the two businesses.

Payment Confirmation:

-Used for Internet transactions.

-"Receipt" when you buy something online.

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