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:

Post Hoc

A logical fallacy where one assumes that because one event followed another, the first event caused the second.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, a key indicator of economic health.

Job Market

The market in which employers search for employees and employees search for jobs; it reflects the demand and supply of labor.

Equity

Fairness or justice in the way people are treated or in the distribution of resources; also refers to ownership interest in a company through stocks.