Regarding Supplies

question 116

Multiple Choice

Regarding supplies,

• A) new-task buying is typical with most purchases.
• B) only one supplier is generally available.
• C) branding is not important for maintenance and small operating supplies.
• D) breadth of assortment is important, but dependability is not.
• E) None of these alternatives is correct.

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Definitions:

Investing Activity

Operations concerning the buying and selling of long-term assets and other financial investments that do not qualify as cash equivalents.

Suppliers

Entities or individuals that provide goods or services to another entity or individual, usually in a business-to-business context.

Time Period Assumption

An accounting principle that the life of a business can be divided into discrete time periods, such as months and years, for reporting purposes.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell the goods, and collect cash from the sale.