When Accounts Payable and Purchasing Systems Are Highly Automated, More

question 50

Multiple Choice

When accounts payable and purchasing systems are highly automated, more detail is included in the transaction files. This deeper level of detail is illustrated by including

• A) economic order quantities for each item that is held in inventory, including delivery times.
• B) quantities, prices, and item descriptions from each line of the supplier invoice.
• C) sequentially numbered purchase requisitions and purchase orders (with matching numbers).
• D) having receiving report numbers match the numbers on the supplier invoices for improved tracking.

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Definitions:

Budgeted Unit Sales

The number of units a company anticipates selling in a future period as outlined in its budget.

Cash Collections

The process of receiving and managing the cash a company receives from its customers, sales, or other sources.

Budgeted Sales

The planned or forecasted sales for a future period, often used for planning and control purposes.

Cash Collections

The process of gathering all cash received from sales, services, or other business activities during a specified period.