56 sales orders are calculated based on current selling prices of the items sold the 4315894

56.Sales orders are calculated based on current selling prices of the items sold.  The source of these prices, which would include the entire set of preestablished and approved prices for each product, is referred to as a(n):

A.Price list

B.Purchase order

C.Packing slip

D.Pick list

57.The maximum dollar amount that a customer is allowed to carry as an accounts receivable balance:

A.Maximum Limit

B.Credit Balance

C.Maximum Balance

D.Credit Limit

58.This item documents the quantities and descriptions of items ordered.  Items from this document should be pulled from the warehouse shelves and packaged for the customer.

A.Packing Slip

B.Price List

C.Pick List

D.Purchase Order

59.The terms of agreement between the company and the common carrier are documented in a(n):

A.Pick List

B.Bill of Lading


D.Packing Slip

60.A chronological listing of shipments that allows management to track the status of sales and to answer customer inquiries regarding order status is called a(n):


B.Bill of Lading

C.Pick List

D.Shipping Log

61.This document is prepared and sent to the customer once the shipment has occurred.  The document provides the details of the sale and requests payment.

A.Sales Invoice

B.Accounts Receivable Statement

C.Bill of Lading

D.Sales Order

62.A special journal that is used to record sales transactions and is periodically posted to the general ledger.

A.General Journal

B.Subsidiary Journal

C.Sales Journal

D.Accounts Receivable Journal

63.This document is prepared on a regular basis to accumulated and summarize all the transactions that have taken place between the customer and the company within the period.

A.Accounts Receivable Journal

B.Sales Invoice

C.Subsidiary Journal

D.Customer Account Statements

64.Which of the following relationships does not violate the rules of segregation of duties?

A.Credit authorization and preparation of the sales order.

B.Preparation of the sales order and sales invoice.

C.Preparing goods for shipment and accounting for inventory.

D.Entering sales in the sales journal and handling the inventory.

65.The internal control activity related to the adequate records and documents, related to sales, includes which of the following?

A.Those responsible for recording sales should ensure that the supporting documentation is retained and organized.

B.Information systems duties included in the revenue process includes the preparation of sales orders and shipping logs.

C.All records are to be prepared by someone other than the person who has custody of the assets.

D.The authorization process is to remain separate from the recording process.

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