In a Properly-Designed Purchasing Process, the Same Employee Most Likely

question 10

Multiple Choice

In a properly-designed purchasing process, the same employee most likely would match suppliers' invoices with receiving reports and also:

• A)cancel suppliers' invoices after payment.
• B)reconcile the accounts payroll ledger.
• C)recompute the calculations on suppliers' invoices.
• D)post the detailed accounts payable records.

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Definitions:

PE Ratio

Price-to-Earnings Ratio; a valuation measure for a company comparing its current share price to its per-share earnings.

Yield %

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or value.

Default Risk Premium

The additional yield that investors require to invest in bonds that have a risk of default, compared to risk-free bonds.

Liquidity Risk Premium

The extra yield or return that investors demand for holding a security that may not be easily sold or converted into cash without a significant loss in value.