For a Firm That Practices Good Internal Controls in the Sales

question 104

Multiple Choice

For a firm that practices good internal controls in the sales and collections cycle, the function of indicating credit approval should be recorded on which of the following documents?

• A) sales order
• B) sales invoice
• C) customer order
• D) remittance advice

---

Definitions:

Supply Chain Performance

The measurement and assessment of the efficiency, effectiveness, and adaptability of supply chain activities and processes.

Transportation Cost

The expense incurred in moving goods or materials from one location to another.

Outbound Shipment

The process of sending goods from a warehouse or distribution center to their next destination, which could be another distribution center, a retail store, or the end customer.

Omni-Channel Retail

A seamless approach to retail that integrates the different methods of shopping available to consumers, such as online, in a physical store, or through a mobile device.