Creative Electronics Has an Idea for a New MP3 Accessory

question 164

Multiple Choice

Creative Electronics has an idea for a new MP3 accessory. Now it is looking for a supplier to design and manufacture the product. It will most likely use ______________ buying.

• A) description
• B) negotiated contract
• C) inspection

---

Definitions:

Equipment

Tangible property used in operations, such as machinery, computers, and furniture, which has a useful life longer than one fiscal period.

Accounts Payable

Liabilities or debts owed by a company to suppliers or creditors for goods or services purchased on credit.

Purchases Journal

A specific type of accounting record where a business records all transactions related to the acquisition of goods intended for resale or for use in production.

Cash Receipts Journal

A specialized accounting journal used to record all cash inflows of a business, including sales and debt collections.