Sales Cycles

Which of the following is not an account affected by the sales and collection cycle?

• Cash

• Gross margin.

• Accounts receivable.

• Allowance for doubtful accounts.

Which of the following is not one of the five classes of transactions included in the sales and 2)

collection cycle?

• Sales returns and allowances.

• Bad debt expense.

• Depreciation expense.

• Charge-off of uncollectible accounts.

Before goods are shipped on account, a properly authorized person must:

• approve the customer's credit.

• approve the journal entry.

• verify that the unit price is accurate.

• prepare the sales invoice.

What event initiates a transaction in the sales and collection cycle?

• Customer request for goods.

• Receipt of cash.

• Identification of a new customer.

• Delivery of product to a customer.

A document prepared to initiate shipment of the goods sold is the:

• sales invoice.

• customer order.

• sales order.

• bill of lading.

A ________ is a document that indicates a request for merchandise by a customer.

• vendor invoice

• customer order

• sales invoice

• sales order

The document used to indicate to the customer the amount of a sale and payment due date is the:

• bill of lading.

• purchase order.

• sales order.

• sales invoice

A ________ is a document that communicates the description, quantity, and related information for 8)

goods ordered by a customer.

• vendor invoice

• sales order

• sales invoice

• customer order

The document that supports reductions in accounts receivable is the:

• credit memo

• bill of lading.

• sales invoice

• monthly statement.

The ________ is a contract between a carrier (e.g., a trucking company) and the seller of goods that dictates the details surrounding the shipment of goods

• sales invoice

• bill of lading

• remittance advice

• picking ticket