Note – Please take our quiz ‘Quiz 25 – Debit Note – (Answers)‘ on this page before going through the below answers. Only the top 3% of our audience scored 10/10 in all of them.
- Name – Quiz 25 – Debit Note – (Answers)
- Topic – Debit Note
- Answers with Explanation
Q1. Debit Note may be treated as an invoice, however, it is different from that.
Ans. The given statement is True. A debit note is different from an invoice, though it may be treated as an invoice.
Q2. Debit Note is issued for the value of goods _____.
Ans. A debit note is issued to the seller by the buyer for the value of goods that have been returned.
Q3. Debit Note shows a _____ currency value (amount).
Ans. It shows a positive amount and resembles a regular invoice with the words (debit note).
Q4. Debit Note is usually sent for reasons such as incomplete & damaged goods received.
Ans. The given statement is True. Typically, debit notes are sent because of incomplete, damaged, or inaccurate goods sent.
Q5. Debit Note reduces _____ for the buyer.
Ans. When the buyer sends the seller a debit note it reduces the buyer’s current liability (payables).
Q6. Debit Note is used both in the case of cash & credit sales.
Ans. The given statement is False. Debit notes only come into play when credit sales are made.
Q7. Debit Note reduces _____ in books of the _____.
Ans. A debit note is a document that reveals details about returned goods and creates an obligation for the seller to cancel the corresponding dues. This means that the creditors (payables) are being reduced for the buyer.
Q8. The buyer updates the “Purchase Returns Book’ on the basis of a debit note.
Ans. The given statement is True. The purchase return book is updated when a debit note is sent. (in the books of a buyer)
Q9. The _____ is obligated to cancel the debt upon acceptance of the debit note.
Ans. Debit Note creates an obligation for the seller to cancel the related dues.
Q10. Debit Note is a document sent by a _____ to confirm the details of goods returned.
Ans. A debit note is a document issued by a buyer to the seller to confirm the details of goods returned.