Before Goods Are Shipped on Account, a Properly Authorised Person

question 71

Multiple Choice

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

• A) verify that the unit price is accurate.
• B) prepare the sales invoice.
• C) approve credit.
• D) approve the journal entry.

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Definitions:

Payoff Table

A table that shows the outcomes of different decisions under various states of nature.

Expected Opportunity Loss

The anticipated loss in value resulting from failing to select the best choice among several competing options.

EOL Criterion

A set of standards or conditions used to determine the end of life or discontinuation of a product, service, or process.

Gross Profits

The gap between earnings and the expense of products sold, prior to subtracting overhead costs, salaries, taxes, and interest charges.