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Sales Invoice – Accounting And Finance Quiz

The key terms in these Finance chapters include Sales Invoice.


A company uses the method for tracking accounts receivable where customers pay according to individual sales invoices. This describes the ________ method.

cycle billing

monthly statement

open-invoiceCorrect

balance forward


Upon notification from the receiving department that the goods have been returned, the manager issues a(n) ________ , which authorizes the adjustment of the customer’s account.

adjusting entry

bill of lading

debt memo

credit memoCorrect


An ________ is an arrangement where a bank receives customer payments and transmits payment data to the organization.

electronic lockboxCorrect

electronic data interchange (EDI)

e-commerce

electronic funds transfer (EFT)


How does an MRP inventory system reduces inventory levels?

by computing the exact costs of purchasing and carrying inventory

none of the above

by reducing the uncertainty regarding when materials are neededCorrect

by receiving materials exactly when needed and in exact quantities


________ is an efficient way to track and process information about raw materials used in production.

A materials resources planning inventory system

A just-in-time inventory system

Identifying materials with bar codes or RFID tagsCorrect

Job-order costing


The acronym “RFP” stands for what?

Request for ProposalCorrect


A company uses the method for tracking accounts receivable where customers pay according to individual sales invoices. This describes the ________ method.

cycle billing

monthly statement

open-invoiceCorrect

balance forward


Upon notification from the receiving department that the goods have been returned, the manager issues a(n) ________ , which authorizes the adjustment of the customer’s account

adjusting entry

bill of lading

debt memo

credit memoCorrect


An ________ is an arrangement where a bank receives customer payments and transmits payment data to the organization.

electronic lockboxCorrect

electronic data interchange (EDI)

e-commerce

electronic funds transfer (EFT)


For strongest segregation of duties, the credit manager should never report to

the credit department.

the marketing department.Correct

the accounting department.

the IT department.


The ________ is a legal contract that defines responsibility for goods that are in transit.

back order

packing slip

bill of ladingCorrect

picking list


Before a shipping notice is prepared during the revenue cycle, shipping department personnel should match the inventory received from the warehouse to the

picking ticket and sales order.Correct

sales order and bill of lading.

sales order.

picking tickets.


A company uses the method for tracking accounts receivable where customers pay according to individual sales invoices. This describes the ________ method.

cycle billing

monthly statement

open-invoiceCorrect

balance forward


Upon notification from the receiving department that the goods have been returned, the manager issues a(n) ________ , which authorizes the adjustment of the customer’s account.

adjusting entry

bill of lading

debt memo

credit memoCorrect


An ________ is an arrangement where a bank receives customer payments and transmits payment data to the organization.

electronic lockboxCorrect

electronic data interchange (EDI)

e-commerce

electronic funds transfer (EFT)


For strongest segregation of duties, the credit manager should never report to

the credit department.

the marketing department.Correct

the accounting department.

the IT department.


The ________ is a legal contract that defines responsibility for goods that are in transit.

back order

packing slip

bill of ladingCorrect

picking list


Before a shipping notice is prepared during the revenue cycle, shipping department personnel should match the inventory received from the warehouse to the

picking ticket and sales order.Correct

sales order and bill of lading.

sales order.

picking tickets.


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