Which One of the Following Is the Correct Sequence of Events

question 2

Multiple Choice

Which one of the following is the correct sequence of events related to the cash flows from a credit sale?

• A) Customer mails cheques; The bank credits the firm's account; Credit sale is made; Firm deposits cheque in bank.
• B) Credit sale is made; Customer mails cheques; The bank credits the firm's account; Firm deposits cheque in bank.
• C) The bank credits the firm's account; Credit sale is made; Firm deposits cheque in bank; Customer mails cheques.
• D) Credit sale is made; Customer mails cheques; Firm deposits cheque in bank; The bank credits the firm's account.
• E) Credit sale is made; The bank credits the firm's account; Customer mails cheques; Firm deposits cheque in bank.

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Definitions:

Exponentially Smoothed Values

Values obtained using exponential smoothing, a technique to forecast data by giving more weight to recent observations.

Motor Oil Sales

The commercial activity of selling oil used for lubricating the engines of vehicles.

Exponentially Smoothed Sales

A forecasting technique that applies weighting factors which decrease exponentially over time, used to smooth time series data.

Biodiesel Sales

The volume or number of units of biodiesel fuel sold within a specific time period.