Which of the Following Is Not a Guideline for Evaluating

question 125

Multiple Choice

Which of the following is not a guideline for evaluating small business purchasing and inventory control?

• A) Take advantage of all purchase discounts.
• B) Keep track of inventory holding costs.
• C) Use maximum quantities or economic ordering quantities.
• D) Keep track of optimum average inventory.

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Definitions:

M1

Refers to a category of the money supply that includes all physical money, such as coins and currency, as well as demand deposits, checking accounts, and negotiable order of withdrawal (NOW) accounts.

Passbook Savings Account

A type of savings account where transactions are recorded in a physical booklet, allowing depositors to track account activity manually.

Checking Accounts

Banking accounts that allow depositors to write checks and use electronic debit to access funds for transactions and withdrawals.

Traveler's Checks

A type of check especially designed for travelers to use as a form of payment, which offers the security against loss or theft by requiring signatures for cashing.