PART III Write and define (2pt) 1 what is invoice? 2 List important of receipt 3 What is chart of accounting 4 List chart of accounting 5 What is receipt matching

1. **What is an invoice?** <br /> An invoice is a commercial document issued by a seller to a buyer, detailing the products or services provided, their quantities, and agreed-upon prices. It serves as a request for payment and includes terms of payment, date of issue, and sometimes additional information like discounts or taxes.<br /><br />2. **List importance of receipt:** <br /> - **Proof of Purchase:** Receipts serve as evidence that a transaction has occurred.<br /> - **Record Keeping:** They help both buyers and sellers keep track of financial transactions for accounting purposes.<br /> - **Returns and Exchanges:** Receipts are often required to return or exchange goods.<br /> - **Warranty Claims:** They can be used to validate warranty claims on purchased items.<br /> - **Expense Tracking:** Individuals and businesses use receipts to track expenses for budgeting and tax purposes.<br /><br />3. **What is chart of accounts?** <br /> A chart of accounts is an organized list of all accounts used by a business in its financial transactions. It provides a framework for recording and reporting financial data, categorizing assets, liabilities, equity, revenues, and expenses.<br /><br />4. **List chart of accounts:** <br /> While specific accounts can vary by organization, a typical chart of accounts might include:<br /> - **Assets:** Cash, Accounts Receivable, Inventory<br /> - **Liabilities:** Accounts Payable, Loans Payable<br /> - **Equity:** Common Stock, Retained Earnings<br /> - **Revenue:** Sales Revenue, Service Income<br /> - **Expenses:** Rent Expense, Salaries Expense, Utilities Expense<br /><br />5. **What is receipt matching?** <br /> Receipt matching is the process of comparing a receipt with other documents, such as purchase orders and invoices, to ensure consistency and accuracy in financial records. This process helps verify that the goods or services billed were actually received and that the amounts charged are correct.