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Which TWO items below identify the purpose of a purchase invoice?
(i) To claim back the sales tax
(ii) To record how much is owed by the customer
(iii) To identify the goods bought
(iv) To record how much is owed from the customer.The answer is 1 and 3. I did 1 and 2.
Why 3 is more appropriate than 2. As we do identify goods in Purchase order and Delivery note. Invoice is demand for payment.
Please help.(ii) would be correct if it said “To record how much is owed to the suppliers”. (ii) and (iv) are identical as there is no difference between ‘owed by’ and ‘owed from’.
(iii) doesn’t make much sense to me either. Invoices can be received many days after the goods are and may be received by a different department or office. IN the meantime the goods might have been dispersed. As you say, a delivery note or goods received note could identify the goods.
Thoroughly bad question.
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