Why Is a Customer's Credit Checked Before Checking Availability of Goods

question 27

Multiple Choice

Why is a customer's credit checked before checking availability of goods?

• A)for the smooth working of the process
• B)for arranging the special terms
• C)to prevent the wastage of shipping-verification labor
• D)to align the processes with organizational goals

Determine the cash effects of transactions involving assets purchases and sales.

Calculate net cash provided by or used in operating activities using the indirect method.

Distinguish between cash receipts and payments within the cash flow statement's sections.

Understand the impact of non-operating items (like gains or losses) on the calculation of net cash flow.

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Definitions:

Direct Expense

Costs that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Sporting Goods Department

A specialized division within a retail store or company focused on the sale and distribution of sports and fitness equipment.

Insurance

A financial product that provides protection against possible future losses or damages in exchange for a premium.

Cost Centers

Parts of an organization that do not directly generate revenue but incur costs, such as HR and IT departments, essential for the business's operations.