NAVTA Practice Test

An invoice is another word for a ____.

1. Receipt

2. Bill

3. Coupon

4. Purchase order

The correct answer is: Bill

An invoice is a document that lists the goods or services provided by a seller to a buyer, along with the amount owed for these goods or services. It is commonly used in business transactions and is an essential part of the payment process. While a bill is also a document that lists the goods or services provided and the amount owed, an invoice is generally used for a specific transaction, while a bill can be used for recurring charges or payments. Option A, receipt, refers to a document that is given to a customer as proof of payment after a purchase has been made. This is typically given after the payment has been made, while an invoice is provided before payment is made. Option C, coupon, is a voucher or discount that can be used to reduce the total cost of a purchase, and it is not used to document the payment owed for goods or services. Option D, purchase order, is a document used by a buyer to request goods or services from a seller. It is not the same as an invoice, which is issued by the seller after the goods or services have been provided. Overall, an invoice is a type of bill that is used to document a specific transaction, making option B the correct