The Preparation of Packing Lists and Shipping Records on Prenumbered

question 48

Multiple Choice

The preparation of packing lists and shipping records on prenumbered forms will help to minimize the related risk of:

• A)Incorrect amounts
• B)Invalid sales
• C)Wrong customers
• D)Omitted transactions

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Definitions:

Cost Of Goods Sold

Expenses directly related to the creation of products a company sells, encompassing both material and labor costs.

Special Journals

Accounting journals designed for recording a particular type of transaction in a more efficient manner.

Cash Payments Journal

A specialized accounting journal used to record all cash outlays of a business, including expenses, asset purchases, and debt payments.

Purchases Journal

A record of all purchase transactions for inventory, usually on credit, maintained by a business.