Which of the Following Lists Outlines the Best Order for a Typical

question 74

Multiple Choice

Which of the following lists outlines the best order for a typical sequence of activities in the revenue and collection cycle?

• A)Delivering goods,billing customers,credit granting,collection activity.
• B)Customer ordering,delivering goods,billing customer,cash receipts.
• C)Customer ordering,delivering goods,credit granting,collection activity.
• D)Credit granting,billing customers,delivering goods,cash receipts.

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Definitions:

LIFO Cost Method

A method of inventory valuation where the last items added to the inventory are considered the first ones sold.

Gross Profit

Gross profit is the financial metric obtained by subtracting the cost of goods sold from sales revenue, representing the core profitability of a company's products or services.

FIFO

An inventory valuation method that assumes that the first items put into inventory are the first ones sold.

Beginning Inventory

The value of a company’s inventory at the start of an accounting period, carried over from the end of the previous period.