What Source Document Supports the Provision of Services on Credit

question 13

Multiple Choice

What source document supports the provision of services on credit?

• A) Supplier's invoice received by the business
• B) A copy of a credit note issued by the vendor
• C) Cash receipt
• D) Invoice sent by the business to a customer

---

Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Old Equipment

Refers to machinery or technology that has become outdated or has surpassed its effective service life but may still be in use.

Salvage Value

The projected remaining worth of an asset once it has reached the end of its operational lifespan.

Internal Rate

Refers to the internal rate of return (IRR), which is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.