Before a New Vendor Is Added into the Vendor Master

question 64

Multiple Choice

Before a new vendor is added into the vendor master file (or the purchasing master file) ,the company should

• A)conduct a credit check on the new vendor.
• B)have the vendor detail matched against the invoice detail.
• C)ask the purchasing manager to verify the authenticity of the vendor.
• D)have the accounting department enter the necessary detail about the vendor.

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Definitions:

Taxable Income

The amount of income that is subject to income tax after deductions and exemptions.

Deductions

Amounts that are subtracted from gross income when calculating taxable income, including expenses, allowances, or specific exemptions.

Exemptions

Specific allowances that relieve individuals, organizations, or products from fulfilling certain conditions or requirements, often for taxes or regulations.

Personal Income Tax

A tax levied on individuals or households based on their total income from various sources, including wages, salaries, and investments.