It Is Proposed That There Are Common Patterns of Inflows

question 53

Multiple Choice

It is proposed that there are common patterns of inflows and outflows in every exchange.All such exchanges can be best represented by:

• A)ER
• B)REA
• C)Relational database
• D)Client-server model

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Definitions:

Credit Sales

Credit sales refer to transactions where goods are sold and payment is allowed at a later date, extending credit to the buyer.

Current Ratio

A financial metric assessing a firm's capacity to settle short-term debts or obligations due within a year, determined by dividing current assets by current liabilities.

Current Liabilities

Current Liabilities are obligations a company is expected to pay within the upcoming year, including accounts payable, short-term loans, and other accrued liabilities.

Liquidity

A measure of how easily assets can be converted into cash without significant loss in value, important for meeting short-term obligations.