When a Company Turns Over Ordering and Inventory Responsibilities to Its

question 53

Multiple Choice

When a company turns over ordering and inventory responsibilities to its suppliers, this is known as:

• A) carpet contracting.
• B) reverse contracting.
• C) strategic alliance.
• D) periodic orders.
• E) blanket contracting.

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Definitions:

Unadjusted Trial Balance

A preliminary list of all accounts and their balances before any adjustments are made, used to check the accuracy of debits and credits in accounting records.

Accounting Cycle

The sequence of processes beginning with the recording of a transaction and ending with the posting to the financial statements, completed in each accounting period.

End-of-period Spreadsheet

A financial document used to summarize account balances and adjustments at the end of an accounting period, facilitating the preparation of financial statements.

Accounting Records

Documents and books that capture all the financial transactions of a business or individual.