Before goods are shipped on account, a properly authorized person must
A) prepare the sales invoice.
B) approve the journal entry.
C) approve the customer's credit.
D) verify that the unit price is accurate.

Question

Quizplus · Accepted Answer

Before goods are shipped on account, the company must verify the customer's credit to ensure that they will pay for the goods. This is typically done by a properly authorized person, such as a credit manager, who approves the customer's credit. A, B, and D are all important steps in the process of shipping goods on account, but they do not necessarily require authorization by a specific person.

Before Goods Are Shipped on Account, a Properly Authorized Person