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Questions and Answers
Which of the following is NOT a class of transactions in the revenue and collection cycle?
Which of the following is NOT a class of transactions in the revenue and collection cycle?
- Sales (cash and credit)
- Cash Receipts (collections on accounts and cash sales)
- Sales Adjustments (discounts, returns and allowances and uncollectible accounts provisions and write-offs)
- Purchases (cash and credit) (correct)
Which account is NOT typically affected in the revenue and collection cycle?
Which account is NOT typically affected in the revenue and collection cycle?
- Sales
- Sales Returns and Allowances
- Purchases (correct)
- Accounts and Notes Receivable
What is the purpose of the customer's purchase order in the revenue and collection cycle?
What is the purpose of the customer's purchase order in the revenue and collection cycle?
- To record sales transactions
- To initiate the sales process (correct)
- To document sales returns and allowances
- To track accounts and notes receivable
Which of the following is NOT a document used in the revenue and collection cycle?
Which of the following is NOT a document used in the revenue and collection cycle?
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What are the typical activities in the revenue and collection cycle?
What are the typical activities in the revenue and collection cycle?
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