The Textbook Referred to the Three Primary Categories of Processes

question 119

Multiple Choice

The textbook referred to the three primary categories of processes in the typical purchasing system.Which of the following in not one of those categories?

• A)Purchase Processes
• B)Cash Disbursement Processes
• C)Receiving Processes
• D)Purchase Return Processes

---

Definitions:

Bonds Payable

Long-term liabilities representing money a company owes to bondholders, to be repaid at a future date.

Discount on Bonds Payable

The variance between the face value of a bond and the amount it is sold for when the sale price is beneath its face value.

Date of Issue

The date on which a financial instrument, such as a bond or stock, is made available for sale or issued.

Redemption

The process of paying off or buying back securities or debts by the issuer before their maturity date, often at a predetermined price.