Which Two of the Following Are True of a Sales

question 11

Multiple Choice

Which two of the following are true of a sales invoice?

• A)It states the particulars of a sale, including the amount owed, terms, and date of sale.
• B)It is used to bill customers, and it provides the basis for recording a sale in the sales journal.
• C)It is a client prepared document with the details of items included in a shipment.
• D)It serves as acknowledgement of receipt of goods for delivery by a freight carrier.

Understand the correct presentation of Lease Receivable on a lessor's balance sheet.

Grasp the impact of direct financing leases on a lessor's financial statements.

Identify required and not required disclosures by a lessor in a sales-type lease.

Understand the accounting treatment for lease payments received by a lessor in a sales-type lease.

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Definitions:

Work-In-Process Inventory

Goods that are in various stages of the production process but are not yet completed.

Non-Value-Added Cost

Expenses that do not contribute to the value or functionality of a product or service, often targeted for reduction or elimination.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including the product or service's potential customers and competitors.

Advertising Campaigns

Organized series of promotional efforts aimed at a specific target audience over a particular timeframe to achieve predefined marketing objectives.