In Which of the Following Is a Person Performing the Role

question 99

Multiple Choice

In which of the following is a person performing the role of an approver?

• A) Dan decides on the product requirements and makes the final choice of suppliers.
• B) Luke has the authority to pick out the supplier and negotiate the terms of purchase.
• C) Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives.
• D) LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG.
• E) Dana authorizes the actions of the deciders and buyers in LKG.

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Definitions:

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Cash Basis

An accounting method where revenues are recognized when cash is received and expenses are recognized when paid.

Costs Expire

This concept relates to the recognition of expenses in the income statement when the underlying value or utility of the cost is consumed or no longer exists.

Operating Cycle

The time period between purchasing raw materials and collecting cash from selling finished goods, measuring the efficiency of a company's operations and cash flow.