It Is Important That Sales Be Billed and Recorded in the Journal

question 13

Multiple Choice

It is important that sales be billed and recorded in the journal as soon as possible after:

• A) the order is received and credit is approved.
• B) the order is received.
• C) shipment takes place.
• D) credit is approved and it is verified that there is enough inventory to fill the order.

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Definitions:

Net Cash Flow

The difference between a company's cash inflows and outflows over a specific period, indicating its ability to generate cash.

Differential Revenue

The amount of increase or decrease in revenue expected from a particular course of action as compared with an alternative.

Differential Cost

The amount of increase or decrease in cost expected from a particular course of action compared with an alternative.

Unit Cost

The total expense incurred to produce, store, and sell one unit of a product, including direct materials, direct labor, and overhead costs.