Gal Runs a Music Store

question 108

Multiple Choice

Gal runs a music store. He has a desktop computer in the back room that acts as a server. He has a point-of-sale terminal that connects to the desktop. He also has a notebook (using in-store wireless access to the Internet) that can be carried around the store to look up current items in stock, or to search for items from one of his suppliers for special orders. Which of the following statements is true?

• A)Gal must have a website in order to use his notebook.
• B)The notebook is on the same network as the point-of-sale terminal.
• C)Gal must have an ISP in order to access the Internet from his notebook.
• D)The notebook will work only when the desktop computer is turned on.
• E)All of these are true.

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Definitions:

Credit To Inventory

An accounting entry that increases the inventory account, reflecting the addition of goods or the correction of an underreported inventory balance.

Credit Period

The amount of time the buyer is allowed in which to pay the seller.

Credit Memo

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under previous invoices.

Percent Of Cash Discount

The percentage reduction in price offered for prompt payment of invoices to encourage early settlement of accounts payable.