Which Set of Supply Chain Flows Is Correctly Described

question 27

Multiple Choice

Which set of supply chain flows is correctly described?

• A) Funds flow only upstream but information flows both upstream and downstream in a supply chain.
• B) Product flows only downstream and information flows only upstream in a supply chain.
• C) Information and product both flow upstream and downstream in a supply chain.
• D) Funds flow both upstream and downstream but product flows only downstream in a supply chain.

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Definitions:

Present Value

The value today of a sum of money to be received in the future, or a series of future payments, based on a chosen rate of return.

Minimum Lease Payments

The lowest amount that a lessee is expected to pay over the lease term, as specified in a lease agreement.

Leased Asset's Fair Value

The estimated market value of an asset under lease, which should represent what the asset would sell for in an arm's length transaction.

GAAP

Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.