Which of the following gives the correct order in which the listed documents are used?
Answer Details
The correct order in which the listed documents are used is: order, delivery note, invoice, debit note, and statement.
- An order is the first document used in a business transaction. It is a request made by a customer to purchase goods or services from a supplier.
- A delivery note is used to document the goods delivered by the supplier to the customer.
- An invoice is issued by the supplier to the customer, indicating the amount of money owed for the goods or services delivered.
- If there are any discrepancies or errors in the invoice, a debit note is used to correct them.
- Finally, a statement is sent to the customer at the end of a specified period, summarizing all transactions and outstanding balances.