Which Three of the Following Are Involved in the Purchasing

question 49

Multiple Choice

Which three of the following are involved in the purchasing cycle?

• A)Establishing payment terms
• B)Selecting vendors
• C)Purchasing goods
• D)Selling goods

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Definitions:

Note Payable

A written promise to pay a specified amount of money, typically with interest, at a future date or dates.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which may not coincide with the calendar year.

Quick Ratio

A liquidity measure that evaluates a company's ability to cover its current liabilities with its most liquid assets, excluding inventory.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of the business.