Which of the Following Methods, If Used in Conjunction with Electronic

question 251

Multiple Choice

Which of the following methods, if used in conjunction with electronic data interchange (EDI) , will improve the organization's cash management program, reduce transaction data input time and errors, and allow the organization to negotiate discounts with EDI vendors based on prompt payment?

• A) Electronic funds transfer.
• B) Knowledge-based systems.
• C) Biometrics.
• D) Standardized graphical user interface.

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Definitions:

Interest-Bearing Note

A debt instrument that pays interest to the holder until it reaches its maturity date.

Journal Entries

Recording of financial transactions in a ledger, such that the total debits equals the total credits, reflecting all changes in accounts within a particular accounting period.

Fiscal Year-End

The fiscal year-end is the conclusion of a 12-month or 365-day period that a company uses for accounting purposes and preparing financial statements, which does not necessarily coincide with the calendar year.

Deferred Income Tax Liability

A tax obligation due in the future for income that has been recognized in the financial statements before it is taxable.