Major Manufacturing Inc.

AFP CTP Question Answer

Major Manufacturing Inc. (MMI) is a manufacturer of customized restaurant equipment. MMI's supplier relations policy is to take advantage of trade discounts, when available. All suppliers offer payment terms of 1/10, net 30. MMI invoices customers at the end of its 30-day manufacturing cycle. Which of the following is the correct chronological sequence of the events listed?

1. Customer invoice is sent.

2. Supplier payment is sent.

3. Customer payment is received.

4. Order is shipped.

5. Customer order is received.

6. Supplier order is placed.

5, 6, 2, 4, 1, 3

5, 6, 4, 2, 3, 1

6, 5, 2, 4, 3, 1

6, 5, 4, 2, 1, 3