At the Time That an AP/CD Process Makes Payment for Goods

question 50

Multiple Choice

At the time that an AP/CD process makes payment for goods or services, the process generally follows which order."

• A) select and record payments, prepare proposed payments, issue and record disbursements
• B) prepare proposed payments, issue and record disbursements, select and record payments
• C) issue and record disbursements, select and record payments, prepare proposed payments
• D) prepare proposed payments, select and record payments, issue and record disbursements

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Definitions:

Machinery

Industrial or commercial equipment and devices designed for specific tasks, contributing to the production or service capabilities of a business.

Cash Flow

The total amount of money being transferred into and out of a business, measuring liquidity, financial flexibility, and overall financial health.

Operating Activities

Business activities related directly to the production, sale, and delivery of a company’s products and services, regarded as the core activities.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.