Question

1. How does a business recognize when to create an invoice and when to create a sales receipt? What are the significant differences between sales receipts and invoices? What industries will most likely use invoices over sales receipts?

2. QuickBooks Desktop records revenue when an invoice is generated even though cash has not been received. Is this an acceptable practice? Why or why not?

Answer 1

Answer:

• The business make a receipt when they sell products using a credit card and make sales receipts when they sell goods for money or get money on credit sales to the client.

The key contrasts among Invoice and a sales receipts are:

1. An Invoice is demands for installments while Sales receipts acts as proof for installments.
2. On the off chance that invoices are given, at that point the income is relied upon to be acknowledge in future and consequently they are recorded as account holders. At the point when receipts are issued it speaks to that money is received and thus either sales are recorded as cash sales or indebted individuals balance is decreased.
3. All in all, Wholesale businesses who sell mass amount of products to resale or futhur handling are probably going to issue invoices and retailers who sell goods to final customers are probably going to issue receipts.

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