The Set of Rules That Determines Whether or Not to Extend

question 96

Multiple Choice

The set of rules that determines whether or not to extend credit is known as:

• A)Credit analysis
• B)Credit policy
• C)Multiple discriminate analysis
• D)The terms of trade credit

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Definitions:

Inventory Value

The monetary value of all the goods that a company has in stock, not yet sold.

Total Inventory

The complete value of a company's raw materials, work-in-progress, and finished goods at a given time.

Perpetual Inventory System

A system for tracking inventory accounting that instantly logs each sale or acquisition of inventory through computerized point-of-sale systems and software for managing enterprise assets.

LIFO

A rephrased definition: An accounting approach to inventory and cost of goods sold valuation that assumes the most recently acquired items are the first to be sold.