What Concepts Can Be Explained Using This Diagram

question 41

Multiple Choice

What concepts can be explained using this diagram?

• A) the movement of water between the oceans and the land
• B) how precipitation ends up in rivers or groundwater
• C) how weathering causes the seas to become saltier
• D) all of these

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Definitions:

Discount Period

The timeframe during which a discount is available or the period between the receipt of a bill and its payment due date when a discount may be taken.

Full Settlement

A financial arrangement where a debtor pays a lump sum that is less than the total amount owed to fully settle the outstanding debt.

Perpetual Inventory System

An inventory accounting system that records purchases and sales of merchandise immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Periodic Inventory System

A periodic inventory system is an accounting method where inventory levels and cost of goods sold are determined at the end of an accounting period, not after each sale or purchase.