Before goods are shipped on account, a properly authorised person must:
A) approve the journal entry.
B) approve credit.
C) verify that the unit price is accurate.
D) prepare the sales invoice.

Question

Quizplus · Accepted Answer

Before goods are shipped on account, a properly authorised person must approve credit to ensure that the customer is creditworthy and the risk of non-payment is minimized. Approving the journal entry and verifying unit price accuracy are generally done in the accounting department, while preparing the sales invoice can be done by the sales department or accounting department.

Before Goods Are Shipped on Account, a Properly Authorised Person