Which of the Following Is a Result of Implementing an E-Commerce

question 162

Multiple Choice

Which of the following is a result of implementing an e-commerce system, which relies heavily on electronic data interchange and electronic funds transfer, for purchasing and billing?

• A) Higher cash flow and treasury balances.
• B) Higher inventory balances.
• C) Higher accounts receivable
• D) Higher accounts payable.

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Definitions:

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management.

LIFO

"Last In, First Out," an inventory valuation method where the latest goods purchased are the first to be sold.

Inventory Cost Card

A record-keeping tool that tracks the cost associated with a specific item of inventory, detailing purchases, sales, and adjustments.

Perpetual Inventory System

An inventory management system where updates to inventory records are made in real-time following each sale or purchase transaction.