What is the difference between an invoice and a supplier's statement?

• A. An invoice requests payment for a specific sale.
• B. A supplier's statement summarises all transactions with that supplier over a period.
• C. A supplier's statement is used to request payment.
• D. An invoice lists all purchases from the supplier over time.

Answer: (A)

The key idea is recognizing what each document is designed to do. An invoice is a request for payment tied to a single sale. It confirms the details of that sale—what was sold, the quantity, price, any tax, and the total due—so the buyer knows exactly what they owe for that specific transaction. A supplier’s statement, on the other hand, is a periodic summary of all transactions with that supplier. It pulls together multiple invoices, any credits or payments, and shows the overall outstanding balance and activity over a set period.

So the difference is that an invoice focuses on one sale and asks for payment for that sale, while a supplier’s statement aggregates many transactions over time to give an overall picture of what’s owed. The other descriptions either reflect the function of the statement or describe broader activity, not the single-sale payment request that defines an invoice.