Question

31) A picking ticket is generated by the A) shipping process. B) sales order entry process. C) packing process. D) billing process. 32) The A) bill of lading B) packing slip C) back order D) picking list is a legal contract that defines responsibility for goods that are in transit. 33) A company uses the method for tracking accounts receivable where customers pay according to individual sales invoices. This describes the A) monthly statement B) open-invoice C) balance forward D) cycle billing method. 34) A method for tracking accounts receivable that matches specific invoices and payments from the customer is called a(n) A) specific identification B) balance forward C) cycle billing D) open-invoice method. 35) A(n) entire month, instead of just at the end of the month. A) continuous B) open-invoice C) cycle billing D) balance forward system prepares and mails monthly statements to customers throughout the 36) The accounts receivable clerk destroys all invoices for sales made to family and friends and does not record the sales in the accounts receivable subsidiary ledgers. The family and friends usually give the clerk cash as a "thank you." Which procedure will not prevent or detect this fraud? A) Send monthly statements to all customers with balances owed.

Answer 1

31) - B - Sale order entry process

Explanation: Picking Ticket contains the total list of goods which are to be shipped as the customers have ordered them.It is generated when a sale order is received.

32) - A - Bill of Lading

Explanation: Bill of Lading is a legal contract that defines responsibility for goods that are in transit. It includes Name and address of both shipper and receiver, description of items in the shipment,any special instructions given,etc....

33) - B - Open-Invoice

Explanation: An Open-Invoice is method used by the company for tracking purposes if the customer pays to them on Individual sales invoice basis. An open -Invoice contains amount due and the due date of the amount due.

34) - D - Open-Invoice

Explanation: The method which matches specific invoices and payments for tracking account receivable is open-invoice method. In this method the company can identify past dues, if any from them for the previous transactions.

35) - C - Cycle Billing

Explanation: In Cycle billing method, the customers are intimated in regular intervals(within a month) about the amount due from them to the company. so that customers are aware of their balance due and that too the intimations are sent in mails so that it will be available for future audit purposes.

36) The question is not clear