A Specific Technique Used to Reduce the Need for Information

question 39

Multiple Choice

A specific technique used to reduce the need for information is to

• A) Create self-contained tasks.
• B) Reduce the amount of inventory on hand.
• C) Invest in information systems.
• D) Create horizontal relationships.
• E) Create strategic alliances.

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Definitions:

Vouchers Payable

An accounting term for records of payable amounts for goods or services received, pending payment to suppliers.

Balance Sheet

A financial statement that presents the financial position of a company at a specific point in time, showing assets, liabilities, and shareholders' equity.

Accounts Payable

Liabilities representing the amount a company owes to suppliers for goods and services purchased on credit.

Controlling Account

The account in the general ledger that summarizes or controls a subsidiary ledger. Example: The Accounts Payable account in the general ledger is the controlling account for the accounts payable subsidiary ledger. After postings are complete, it shows the total amount owed from purchases made on account.