Which of the Following Is True with Regard to Primary

question 16

Multiple Choice

Which of the following is true with regard to primary firms,first-tier suppliers,and second-tier suppliers?

• A)A first-tier supplier is the primary firm to a second-tier supplier.
• B)A second-tier supplier is the primary firm to a first-tier supplier.
• C)Second-tier suppliers are not as important as first-tier suppliers.
• D)To a primary firm,a first-tier supplier supplies finished goods and a second-tier supplier supplies raw materials.

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Definitions:

Cash Account

A financial account where cash transactions are recorded, showing the cash inflows and outflows for a person or business.

Bank Reconciliation

The method of aligning the balance in a company's financial records for a cash account with the relevant details on a bank statement.

Deposits in Transit

Funds that have been received and recorded by a business but not yet processed or acknowledged by the bank.