Revenue Cycle Journal entry

What is the correct journal entry to record a sale on credit?

• Debit Sales; Credit Accounts Receivable

• Debit Accounts Receivable; Credit Sales

• Debit Sales; Credit Cash

• Debit Cash; Credit Sales

Which document is prepared first in the revenue cycle to initiate a sale?

• Sales Invoice

• Sales Order

• Shipping Document

• Credit Memo

When goods are shipped to a customer, which document is used to verify that the items have been sent?

• Sales Invoice

• Packing Slip

• Purchase Order

• Delivery Note

Which assertion ensures that all recorded sales transactions have actually taken place ?

• Completeness

• Valuation

• Occurrence

• Rights and Obligations

Which assertion ensures that no sales transactions have been omitted from the records?

• Completeness

• Accuracy

• Rights and Obligations

• Valuation

In the revenue cycle, what is the role of the accuracy assertion?

• To confirm that sales transactions are recorded at the correct amounts

• To verify that transactions are recorded in the correct period

• To ensure that all goods are shipped before recognizing revenue

• To confirm that customer balances exist

Which document acts as proof of delivery to the customer?

• Sales Invoice

• Credit Memo

• Delivery Note

• Sales Order

Which assertion ensures that revenue is recorded in the correct accounting period?

• Completeness

• Cutoff

• Accuracy

• Valuation

What does the classification assertion ensure in the context of the revenue cycle?

• That transactions are recorded in the correct period

• That all revenue transactions are correctly categorized in the financial statements

• That sales invoices are issued only for valid sales orders

• That revenue is recorded only after goods are delivered

In the revenue cycle, which document supports the existence assertion for accounts receivable?

• Sales Order

• Sales Invoice

• Customer Purchase Order

• Credit Memo