What critical event must take place before goods can be shipped in order to assure payment can be reasonably expected?
A)Determination of correct delivery address
B)Credit approval
C)Matching of shipping document with sales invoice
D)Receipt of sales order from the customer

Question

Quizplus · Accepted Answer

Credit approval ensures that the customer has sufficient funds or credit to pay for the goods being shipped. Without credit approval, there is a risk that payment will not be received, which would cause a loss to the company. Therefore, credit approval must take place before goods can be shipped in order to assure payment can be reasonably expected.

What Critical Event Must Take Place Before Goods Can Be