In an Entity-Relationship (E-R) Diagram for the Accounts Payable/cash Disbursements

question 66

Multiple Choice

In an entity-relationship (E-R) diagram for the accounts payable/cash disbursements process, you would expect that the words sent to would appear in the diamond showing the relationship between:

• A) VENDORS and INVENTORY_RECEIPTS
• B) VENDORS and VENDOR_INVOICES
• C) VENDORS and CASH_DISBURSEMENTS
• D) CASH_DISBURSEMENTS and INVENTORY_RECEIPTS

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Definitions:

Assets

Economic resources owned or controlled by a business, viewed as having value and expected to provide future benefits to the operations.

Profits

The net income received by a company after deducting all expenses, taxes, and costs.

Unrealized Gain

Profit that has been made on paper from investments but has not yet been converted to cash by selling the asset.

Commercial Substance

A characteristic of a business transaction that leads to a change in the cash flows of the entity, indicating that the change has a significant economic effect.