For a firm that practices good internal controls in the sales and collections cycle, the function of indicating credit approval should be recorded on which of the following documents?
A)Sales order
B)Sales invoice
C)Customer order
D)Remittance advice

Question

Quizplus · Accepted Answer

The sales order is the document that initiates the sales and collections cycle, and it includes information on the approval of credit for the customer. Recording the credit approval on this document ensures that there is a clear record of the customer's credit status and that sales are only made to customers who have been approved for credit. This helps to reduce the risk of bad debt and improve the overall efficiency of the sales and collections process.

For a Firm That Practices Good Internal Controls in the Sales