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

Indicating credit approval should be recorded on the sales order document to ensure that a credit check has been performed and the customer has been approved for the purchase. This helps to prevent fraud and ensure that the company is not extending credit to customers who are not likely to pay. The sales invoice document is generated after the sale has been made and does not typically include credit approval information. The customer order is an initial request for products or services and may not include credit approval information. The remittance advice is a document sent by the customer when payment is made and does not typically include credit approval information.

For a Firm That Practices Good Internal Controls in the Sales