The Accounts Payable Department Usually Has Responsibility for Approving Acquisitions

question 102

Multiple Choice

The accounts payable department usually has responsibility for approving acquisitions for payment by comparing the details on the

• A) vendor's invoice and the receiving report.
• B) vendor's invoice and the purchase requisition.
• C) purchase order, receiving report, and vendor's invoice.
• D) purchase requisition, purchase order, and receiving report.

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Definitions:

Total Equity

The total net worth of a company, calculated as total assets minus total liabilities; represents the owners' claim after debts have been paid.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, demonstrating the profitability of a company.

P/E Ratio

The price-to-earnings ratio, a valuation measure comparing the current share price of a company to its per-share earnings.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including those held by institutional investors and restricted shares held by company insiders.