What Are the Two Ways Governments Make Purchases

question 77

Multiple Choice

What are the two ways governments make purchases?

• A)Cash or credit
• B)Contracting previous suppliers and bids
• C)Bids and negotiated contracts
• D)Lottery system and contract negotiations
• E)Request for new purchases and recurring orders

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the loss of value over time.

Amortization

The process of spreading out a loan into a series of fixed payments over time, or the gradual reduction of the book value of an intangible asset over its useful life.

Cash Flows

The total amount of money being transferred into and out of a business, affecting the company's liquidity.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, borrowing, and repaying debt.