The Competitive Bidding Approach That May Include Deliberations with Suppliers

question 26

Multiple Choice

The competitive bidding approach that may include deliberations with suppliers throughout the bidding process is referred to as:

• A)closed bidding.
• B)open bidding.
• C)contractual bidding.
• D)institutional bidding.

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Definitions:

Terms N/30

Payment terms indicating that an invoice must be paid within 30 days of the invoice date.

Allowance Method

An accounting technique used to account for bad debts, estimating and setting aside a portion of accounts receivable that may not be collectible.

Percent of Sales Method

A financial forecasting model that estimates future elements of a financial statement as a percentage of sales.

Percent of Receivables Method

This is an accounting method used to estimate the amount of a company's receivables that will not be collected, based on a percentage of total receivables.