Statement 1: The two major business functions associated with revenue
cycle are the sale of goods and services to the customers and the cash
collection.
Statement 2: Customer orders are declaration or instructions to purchase
goods. This is in a form of customers purchase requisition.
PR -> PO (SENT TO SUPPLIERS)
A. Both statements are true
B. Both statements are false
C. Only the first statement is true
D. Only the second statement is true
Statement 1: Bill of lading describes the goods shipped and represents
contract between the seller and the carrier.
Statement 2: The main responsibility of the billing function is to ensure that
all goods are shipped and all services provided are billed at authorized prices
and terms.
A. Both statements are true
B. Both statements are false
C. Only the first statement is true
D. Only the second statement is true
Statement 1: Customer’s requests for adjustments or returned goods
should be reviewed by the Accounting Department.
Statement 2: Returned goods are handled through the Shipping
Department and returned to the warehouse.
A. Both statements are true
B. Both statements are false
C. Only the first statement is true
D. Only the second statement is true