In an AP/CD Process, You Would Expect That "Validating" a Vendor

question 93

Multiple Choice

In an AP/CD process, you would expect that "validating" a vendor invoice might include all of the following steps except:

• A)having a copy of the invoice approved by the purchasing manager
• B)comparing the invoice with a copy of the purchase order
• C)comparing the invoice with a copy of the receiving report
• D)checking the invoice for mathematical accuracy

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Definitions:

Net Operating Income

A company’s income after operating expenses are subtracted, but before income taxes and interest are calculated.

Residual Income

The amount of income that an individual has after all personal debts, including the mortgage, have been paid.

Minimum Required Rate

The lowest rate of return or discount rate that a project must exceed to be considered as a viable option.

Operating Data

Consists of information gathered from the day-to-day operations of a business, which can include sales figures, production costs, and other performance indicators.