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

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Definitions:

Consignee

The retailer in a consigned inventory arrangement.

Retailer

A business entity that sells goods or services directly to consumers through various distribution channels to earn a profit.

Current Replacement Cost

The amount of money it would cost to replace an asset at the present time, considering its current condition.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.