1. Which of the following documents travel with the goods and ultimately lands on the hands of the buying customer?

c. Billing of Lading

b. Shipping Notice

a. Shipping Log

d. Packing Slip

2. Corporate inbreeding is not a good practice because

b. When Board of Directors are not independent from the company, they tend to favor decisions that will benefit their interest rather than the companys stakeholders.

d. None of the above

c. When Board of Directors are not dependent from the company, they tend to favor decisions that will benefit their interest rather than the companys stakeholders.

a. It promotes executives to be pressured to present overstatements on the financial

3. _____ provides proof that the item ordered by a customer is already dispatched and shipped

a. Packing ticket

c. Approved Sales order

d. Work order

b. Shipping notice

4. Checking of credit limit must be done by

c. By personnel from the credit check function, separately from the Receive Sales Function

b. An automated system, hence, all companies, big or small, must avail of automated systems in checking credit limit

a. Sales personnel, since he/she receives the order from the customer, she must be efficient by checking the customers credit limit too

d. The Sales manager, because approval matrix must always include managerial positions

5. During early times, the business world experience lack of auditor independence where audit firms are essentially auditing their own work. This practice is

d. Highly discouraged because this may adversely affect their consulting fees and may result to disgruntled clients

c. Highly discourage because self-review imposes high risk of concealing detected problems

a. Highly discourage because it can raise incompetencies

b. Highly encourage to perform faster and more efficient audit

6. Ideally, back-ordered items are shipped, before new sales are processed. Why?