The Materials Management Organization Structure Paved the Way for _____

question 15

Multiple Choice

The materials management organization structure paved the way for _____ structure: :

• A) value network chain structures
• B) supply chain management structure
• C) procurement management structure M
• D) purchasing centralization N
• E) purchasing decentralization O

Understand the components and computation of return on equity and return on total assets.

Grasp the concept of financial leverage, including its effect on company's equity and debt structure.

Recognize the impact of share transactions and asset sales on a company's financial ratios.

Understand liquidity and solvency ratios, particularly the current ratio and acid-test (quick) ratio.

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Definitions:

Contra-Asset Account

An account that offsets or reduces the balance of its related asset account, such as accumulated depreciation reducing the carrying value of fixed assets.

Liability Account

An accounting record that represents a company's legal debts or obligations that arise during business operations.

Cash Basis

An accounting method where revenue and expenses are recognized only when cash is exchanged.

Accounts Receivable

Funds that customers owe to a business for products or services they have received but have not yet paid for.