Which of the Following Is NOT an Operational Decision to Be

question 49

Multiple Choice

Which of the following is NOT an operational decision to be made in the expenditure cycle?

• A)Deciding which suppliers provide the best quality and service at the best prices.
• B)Identifying if sufficient cash is available to take advantage of any discounts suppliers have offered.
• C)Determining how payment can be made to suppliers in order to maximise cash flow.
• D)Determining whether expenditure business processes align with overall business strategy.

Understand the value of separating cash flows into operating, investing, and financing activities for analysis.

Apply the direct method to prepare the cash flows from operating activities section of the Statement of Cash Flows.

Understand the direct method for calculating cash flows from operating activities.

Understand how to calculate cash paid for merchandise and other expenses.

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Definitions:

Tax-free Amount

An amount or income received that is not subject to income tax by the taxpayer.

Qualified Pension Plan

A retirement plan that meets the requirements of the Internal Revenue Code, offering tax benefits to the entity that establishes the plan and its participants.

Simplified Method

A way to calculate tax deductions or credits that reduces complexity, often used for retirement distribution calculations or home office deductions.

Taxable Income

The amount of income used to determine how much tax an individual or a corporation must pay to the government in a given tax year.