Question

Which of the following control activities may prevent the failure to bill customers for some shipments?

1) Each shipment should be supported by a prenumbered sales invoice that is accounted for.
2) Each sales order should be approved by authorized personnel.
3) Sales journal entries should be reconciled to daily sales summaries.
4) Each sales invoice should be supported by a shipping document.

Answer 1

To reassure a potential buyer faced with imperfect information, a seller can offer a comprehensive warranty, provide transparent product information, and showcase third-party certifications or endorsements.

Step-by-step explanation:

In situations where buyers are faced with imperfect information regarding a product or service, sellers can take several steps to reassure potential customers and facilitate their purchasing decision. One effective approach is providing a comprehensive warranty or guarantee, which offers a promise of repair, replacement, or refund if the product does not meet specified standards.

Another method is the provision of transparent product information, which involves giving detailed descriptions, specifications, and user reviews to help the buyer understand the product better. Additionally, obtaining and showcasing third-party certifications or endorsements can serve as an independent verification of the product's quality or safety standards, further instilling buyer confidence.