The Document, Also Known as the Check Authorization, That Is

question 57

Multiple Choice

The document, also known as the check authorization, that is a checklist of steps necessary for approving an invoice for recording and payment is the

• A) Purchase requisition.
• B) Purchase order.
• C) Invoice.
• D) Receiving report.
• E) Invoice approval.

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Definitions:

Allowance for Doubtful Accounts

An accounting method used to estimate the portion of a firm's receivables that it expects will not be collected.

Net Credit Sales

The total revenue from sales made on credit after deducting any returns or allowances, representing the true credit sales figure.

Percentage-of-Sales Basis

A method used in budgeting and planning where certain costs or expenses are based on a fixed percentage of sales.

Accounts Receivable

Money owed to a business by its clients for goods or services that have been delivered but not yet paid for.