Final answer:
The statement about the sales transactions being the result of five functions is true, as they reflect the standard procedures in the sales and collection cycle.
Step-by-step explanation:
The statement that sales transactions are the result of the following five functions in the sales and collection cycle: processing customer orders, granting credit, shipping goods, billing customers, and recording sales, is true. These are typical functions that are involved in the cycle of a sale, from the moment a customer places an order until the company recognizes the revenue. The process starts with the receipt and processing of a customer's order. Credit is then assessed and granted to the customer.
Once credit is approved, goods are shipped out to the customer. The transaction continues with the billing process where the customer is issued an invoice for the goods or services provided. Finally, the sale is recorded in the company's accounting records, typically in the sales ledger, which reflects the revenue earned from the sale. These steps ensure proper transaction flow and help maintain accurate financial records.