Question

Which of the following sales and collection process activities can result in the creation of an account receivable? Receiving a sales order from a customer Shipping ordered products to the customer Billing the customer Recording payment from the customer None of the above

Answer 1

Sales and collection process

At the point when items and administrations are sold by a firm to its clients and consequently the clients pay for the item and administrations, it is a procedure which includes deals just as an assortment. The deals and assortment process covers all the business exercises identified with selling of item and administrations, upkeep of client records, charging and recording installments made by the clients. Overseeing accounts receivables through maturing accounts and approving credit likewise goes under deals and assortment process.

In deals and assortment process all the bookkeeping exchanges are created that record deals income, accounts receivables and receipts in real money. This procedure likewise influences those association's expenses of products sold and stock that participate in selling stock. Deals are commonly made in kind of money or credit. It might likewise incorporate deals charge.

At the point when a deal is made in kind for money, the parity of money increments and when using a credit card, the records receivables are made which is the cash that is owed to the firm from deals of item and administrations. Lastly, when a credit client pays money, the money balance increments and records receivables are decline by the sum paid.

1. Accepting a request for deals from a client doesn't make any records receivables. In the wake of getting the request the items are created first and afterward conveyed. A short time later the receipt is created and ultimately, sent to the client. Thus, option a is incorrect.
2. When selling is done, the clients are charged according to the statements chose the two gatherings and afterward in the wake of sending receipt the assortment is made. Thus, option c is also incorrect.
3. Recording of installment is made. at the point when clients really pay the measure of deals whether deals is made in real money or credit. Thus. option d is also incorrect.
4. The alternative e expresses that none of the choices delineates the movement in regard to the making of records receivables which is additionally off base in light of the fact that the one choice is right out of the all choices.
5. At the point when the arranged completed merchandise are dispatched to the client and deals is using a loan, at that point the record receivables is made subsequent to sending the receipt to the clients. Thus, the correct option is option B