Match each commercial document used in home trade on the left with its primary functional definition on the right.
- Pro Forma InvoiceSent by a seller to demand payment in advance before goods are dispatched or supplied on approval.
- Consignment NoteCompleted when employing an independent transport carrier, detailing consignment specifications and delivery instructions.
- Statement of AccountSent periodically by a seller to a buyer summarizing all transactions, payments, credit notes, and outstanding balances.
- Letter of InquirySent by a prospective buyer to a supplier to request details on goods, prices, and terms of sale.
Answer
Pro Forma Invoice matches with the document sent to demand payment in advance; Consignment Note matches with the document given to an independent carrier detailing shipment; Statement of Account matches with the periodic summary of transactions and net balance; Letter of Inquiry matches with the buyer's request for price and terms details.
In home trade, documents serve distinct accounting and transport functions: a Pro Forma Invoice requests advance payment or presents preliminary charges; a Consignment Note gives transport details to an independent carrier; a Statement of Account summarizes periodic transactions and balance outstanding; and a Letter of Inquiry initiates trade by requesting price details from suppliers.
Step-by-Step Solution
Key Concept
Functions of Commercial Documents in Home Trade