Which of the Following Describes a Purchases Database

question 69

Multiple Choice

Which of the following describes a purchases database?

• A)Electronic files that accumulate data on purchases, accounts payable, and cash disbursements.
• B)The check (EFT) information with purchase order and receiving.
• C)The check (EFT) information with the underlying information on the voucher.
• D)Electronic files that contain information on the cash disbursements journal with the related voucher information.

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Definitions:

Average Inventory

The mean value of inventory over a certain period of time, calculated to assess inventory levels and turnover.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.

Net Credit Sales

The total revenue from sales made on credit, minus returns and allowances, over a specific period.

Accounts Receivable

A financial record representing the money owed to a company by its customers for goods or services delivered on credit.