What Is a Typical Procedure for Processing Sales Orders from New

question 44

Multiple Choice

What is a typical procedure for processing sales orders from new customers or customers making a purchase that causes their credit limit to be exceeded?

• A)General authorization to approve the order is given to sales clerks.
• B)Specific authorization must be granted by the credit manager.
• C)The sale should be rejected.
• D)The sales clerk should order a report from a credit bureau before approving the order.

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Definitions:

Marking-to-Market

An accounting practice where assets and liabilities are valued according to current market prices, rather than book or historical prices.

Troy Ounce

A unit of measure used for precious metals, slightly heavier than an avoirdupois ounce, equal to approximately 31.1035 grams.

Silver Contract

A legally binding agreement for the purchase or sale of silver in the future at an agreed-upon price.

Futures Contracts

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used for hedging or speculation on financial markets.