The Third Basic Activity in the Revenue Cycle Involves Billing

question 60

Multiple Choice

The third basic activity in the revenue cycle involves billing customers and maintaining accounts receivable.What is the basic document created in the billing process?

• A)the bill of lading
• B)the purchase order
• C)the packing list
• D)the sales invoice

---

Definitions:

Land Improvements

An asset account that records improvements made to land; such improvements have a limited life and are subject to depreciation (examples are a driveway or fences).

Limited Life

A term often used to describe the finite existence or duration of certain entities or agreements.

Installation Costs

The expenses associated with setting up equipment or machinery for use, which can include labor, materials, and other direct or indirect costs.

Freight

The charge imposed for the transport of goods by sea, air, or land.