SOLVED

7) A document prepared to initiate shipment of the goods sold by an independent shipper is the: A) sales order. B) bill of lading. C) sales invoice. D) customer order. 8) The document used to indicate to the customer the amount of a sale and payment due date is the: A) sales invoice. B) bill of lading. C) purchase order. D) sales order. 9) In the sales and collection cycle when is, generally, the earliest point at which revenue can be recognized? A) sales approval B) credit approval C) cash collection D) shipment of goods 10) Most companies recognize sales revenue when: A) sales are invoiced. B) goods are received by the customer. C) goods are shipped. D) Both B and C are correct, depending upon the company’s revenue recognition policies. 11) Which of the following is not a business function within the “Sales” class of transactions? A) processing customer orders B) granting credit C) processing and recording sales returns and allowances D) shipping goods 12) The total of the individual account balances in the accounts receivable subsidiary ledger should equal the: A) total sales for the period. B) balance of the sales account in the general ledger. C) total sales less the total cash received for the period. D) balance of the accounts receivable account in the general ledger. 13) In the accounts receivable subsidiary ledger the length of time the account has been due can be useful to the client and the auditor in preparing the: A) trial balance. B) working trial balance. C) accounts receivable trial balance. D) aged accounts receivable trial balance. 14) A document sent to each customer showing his or her beginning accounts receivable balance and theamount and date of each sale, cash payment received, any debit or credit memo issued, and the ending balance is the: A) accounts receivable subsidiary ledger. B) monthly statement. C) remittance advice. D) sales invoice. 15) The document that accompanies the customer’s payment is the: A) credit memo. B) remittance advice. C) vendor invoice. D) monthly statement. 16) The document that requires adjustments to the customers subsidiary ledger account is the: A) bill of lading. B) sales invoice. C) credit memo. D) monthly statement.