A Technical Firm That Assembles Computers Decides to Buy LCD

question 54

Multiple Choice

A technical firm that assembles computers decides to buy LCD monitors from a supplier that specializes in LCD monitors and batteries.The materials manager at the firm suggests to the top management to place an order for both monitors and batteries at the same time so that he can save on transportation costs and also get a discount for bulk purchase.The role played by the manager is that of a(n) :

• A)influencer.
• B)user.
• C)decider.
• D)buyer.
• E)gatekeeper.

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Definitions:

Maker

The party in a financial transaction who creates or issues the instrument, such as a check writer or bond issuer.

General Ledger

A comprehensive record of all financial transactions over the life of a company, serving as the primary source of data for financial reporting.

Notes Receivable

A claim or promissory note that provides evidence of a debt due to the holder from a debtor with specified terms of repayment.

Allowance Method

An accounting technique used to account for uncollectible accounts receivable, estimating and recording bad debt expenses based on historical data.