Final answer:
A sales invoice is a document used in business to indicate that a transaction has taken place. It is usually not a document that indicates credit approval. Option B is correct.
Step-by-step explanation:
A sales invoice is a document used in business to indicate that a transaction has taken place. It is usually not a document that indicates credit approval. Instead, a separate document called a credit memo or credit note would be issued to indicate credit approval.
The sales invoice is typically generated after a sale has been made, and it includes details such as the buyer and seller's information, the items or services purchased, the quantities, prices, and any applicable taxes or discounts. The invoice serves as a record of the transaction and provides a basis for payment.
A sales invoice is a document issued by a business to indicate a transaction and to request payment for a product or service rendered. The statement that a sales invoice usually indicates credit approval is false.
Instead, a sales invoice is used to document the details of a sale, such as the quantity of goods sold, their price, total amount due, and payment terms.
While an invoice may include payment terms that imply credit (e.g., net 30 days), the actual credit approval process is separate and occurs before the invoice is issued, commonly during the customer onboarding or order confirmation stage.