Establishing Long-Term Mutually Beneficial Relationships with Suppliers Improves the Company

question 172

True/False

Establishing long-term mutually beneficial relationships with suppliers improves the company ability to implement just-in-time (JIT) inventory systems, which let it manage inventories better and respond quickly to market demands.

---

Definitions:

Note Payable

A financial obligation represented by a formal written agreement to pay a specified sum of money at a future date.

Accounting Equation

The foundational equation in accounting, representing the relationship between assets, liabilities, and owner's equity: Assets = Liabilities + Owner's Equity.

Insurance Policy

A contract between an insurer and a policyholder specifying the terms for payout in the event of loss or damage.

Supplies On Account

Goods or items purchased on credit, where payment is deferred to a future date, typically recorded as a liability until paid.