A Potential Misstatement for the Function of Filling Sales Orders

question 16

Multiple Choice

A potential misstatement for the function of filling sales orders is

• A) goods may be released from the warehouse for unauthorized orders.
• B) sales may be made without credit approval.
• C) sales may be made to unauthorized customers.
• D) all of the above

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Definitions:

Sales Discount

A reduction from the listed price of goods or services, offered by sellers to buyers under specific conditions.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for certain other costs such as salaries, administrative expenses, and taxes.

Credit Terms

The conditions under which credit will be extended to a customer, including the repayment time frame and any applicable interest or discounts for early payment.

Credit Period

The amount of time allowed by a seller for a buyer to pay for a purchase, often used in trade credit agreements.