Electronic Data Interchange (EDI)provides

question 9

Multiple Choice

Electronic data interchange (EDI) provides:

• A)secure transmission of large amounts of data,but with slow turnaround.
• B)slow processing of large amounts of data,but with greater accuracy.
• C)longer process cycle time,but with greater accuracy.
• D)secure transmission,greater accuracy,and shorter process cycle time for all data.
• E)secure and rapid transmission of small amounts of data.

---

Definitions:

Gross Profit

The financial gain made after subtracting the cost of goods sold from total sales revenue.

Ending Inventory

The estimation of goods on hand for sale at the termination of an accounting period, figured by the formula: starting inventory plus acquisitions minus the cost of goods sold.

Inventory Turnover Ratio

A measure of how rapidly inventory is sold or used in a given period, calculated by dividing cost of goods sold by average inventory.

Days' Sales

Often refers to days' sales outstanding (DSO), which measures the average number of days it takes a company to collect payment after a sale has been made.