Which of the Following Is the Document Used as the Basis

question 62

Multiple Choice

Which of the following is the document used as the basis for recording sales transactions and updating the accounts receivable master file?

• A) bill of lading
• B) sales order
• C) sales transaction file
• D) sales journal

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Definitions:

Consolidated Statement

Financial reports consolidating the assets, liabilities, and income of a parent organization along with its subsidiary companies, showing them as a single entity.

Goodwill Impairment

A write-down of the value of goodwill on a company's balance sheet when the fair value of the acquired company falls below the value recorded at the time of acquisition.

Gross Profit

Income remaining after the cost of goods sold has been deducted from total sales revenue, before deducting any operating expenses.

Equity Method

An accounting technique used by companies to assess the profits earned by their investments in other companies, recognizing income based on the share owned.