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Slide 1

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1A: The Financial Document Trail
Customer Supplier
Buyer
Seller
Purchase Order
Delivery Note
Goods Received
Note Invoice
Remittance Advice Note
Credit Note
Payment Statement of Account
Remittance Advice Note
Receipt
Trade discounts are Value Added Tax:
subtracted before 20% added to most
the VAT is added. products/services in UK
A legal requirement Audit Trail Proof/evidence Clear record of transactions…read more

Slide 2

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2B: Making and Receiving Payment
Debit Card
Own Owe
Cheque Cash Credit Card
In
Credit Transfer
Start-up Costs
Usually a one-off payment, e.g.
to get the business started Out
Standing Order
Running Costs
Regular payments needed to
keep the business running, e.g. Direct Debit
weekly or monthly
electronic
e Online Shopping Con
al is PAYPAL tex
t u t ual
t ex Small payments Cheques ise
n
Co Non- electronic CASH POST Non- electronic
electronic electronic
Wages Bills Rent Large Payments Weekly Shop
CREDIT TRANSFER DIRECT BEBIT STANDING ORDER CREDIT CARD DEBIT CARD…read more

Slide 3

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2C: Financial Statement (1)
Sales Revenue SR: NIS x SP
Cost of Sales CoS = OS+P-CS
Gross Profit GP = SR ­ CoS
Expenses TE = E+E+E+E
Net Profit NP = GP ­ TE
The Profit & Loss Account…read more

Slide 4

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2C: Financial Statement (2)
Current Assets ­ Current Liabilities = Net Current Assets CA ­ CL = NCA
(Working Capital)
Fixed Assets + Net Current Assets Net Assets FA + NCA = NA
=
(Working Capital)
Capital + Net Profit + Long-term = Capital C + NP + LTL = CE
Liabilities Employed
Balance Sheet…read more

Slide 5

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2D: Profitability and Liquidity Ratios…read more

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