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WorksheetsSales Cycles
Total questions: 10
Worksheet time: 5mins
Which of the following is not an account affected by the sales and collection cycle?
Cash
Gross margin.
Accounts receivable.
Allowance for doubtful accounts.
Which of the following is not one of the five classes of transactions included in the sales and 2)
collection cycle?
Sales returns and allowances.
Bad debt expense.
Depreciation expense.
Charge-off of uncollectible accounts.
Before goods are shipped on account, a properly authorized person must:
approve the customer's credit.
approve the journal entry.
verify that the unit price is accurate.
prepare the sales invoice.
What event initiates a transaction in the sales and collection cycle?
Customer request for goods.
Receipt of cash.
Identification of a new customer.
Delivery of product to a customer.
A document prepared to initiate shipment of the goods sold is the:
sales invoice.
customer order.
sales order.
bill of lading.
A ________ is a document that indicates a request for merchandise by a customer.
vendor invoice
customer order
sales invoice
sales order
The document used to indicate to the customer the amount of a sale and payment due date is the:
bill of lading.
purchase order.
sales order.
sales invoice
A ________ is a document that communicates the description, quantity, and related information for 8)
goods ordered by a customer.
vendor invoice
sales order
sales invoice
customer order
The document that supports reductions in accounts receivable is the:
credit memo
bill of lading.
sales invoice
monthly statement.
The ________ is a contract between a carrier (e.g., a trucking company) and the seller of goods that dictates the details surrounding the shipment of goods
sales invoice
bill of lading
remittance advice
picking ticket
