What is an invoice best described as?

An invoice is best described as a bill because it is a document issued by a seller to a buyer that outlines the amount owed for goods or services provided. It typically includes details such as the quantity, description, and price of the items sold, as well as the payment terms and due date. The purpose of an invoice is to formally request payment, making it an essential tool in the sales process, helping to track sales and manage cash flow.

In contrast, a purchase order is a document created by the buyer to indicate a desire to purchase particular goods or services, while a receipt is proof of payment that confirms the transaction has been completed. A statement of account summarizes all transactions over a specific period but does not specifically request payment for a particular transaction like an invoice does. Thus, identifying an invoice as a bill captures its primary function in business transactions.