Which of the Following Statements Relating to the Creation of an Invoice

question 22

Multiple Choice

Which of the following statements relating to the creation of an invoice is correct?

• A)If invoices are not posted regularly,the amounts shown as owing in accounts receivable will be understated.
• B)If invoices are not posted regularly,the amounts shown as owing in accounts receivable will be overstated.
• C)Updating accounts receivable must happen in real-time;otherwise the accounts receivable accounts will be understated.
• D)Invoices must be dispatched with the goods to ensure timely payment.

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Definitions:

Liquidity

The ease with which an asset, or security, can be converted into ready cash without affecting its market price.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.

Financial Ratios

Metrics derived from financial statements that are used to evaluate a company's performance and financial health.

Total Sales

The aggregate revenue a company generates from the sale of goods or services before any deductions are made.