Which of the Following Should the Purchasing Agent NOT Be

question 64

Multiple Choice

Which of the following should the purchasing agent NOT be able to do?

• A) Prepare the purchase order.
• B) Approve the payment.
• C) Contact the supplier of the goods.
• D) Negotiate prices with suppliers.

Calculate working capital and understand its significance.

Analyze the effect of various transactions on financial ratios such as the current ratio, acid-test ratio, and debt-to-equity ratio.

Apply formulas to determine current ratio and acid-test ratio.

Assess the impact of inventory and accounts receivable management on liquidity and operational efficiency.

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Definitions:

Social Class

A categorization within society determined by social and economic levels.

FICA-OASDI

The Federal Insurance Contributions Act Old-Age, Survivors, and Disability Insurance program, which funds Social Security and is paid for by payroll taxes.

FUTA

An abbreviation for the Federal Unemployment Tax Act, which imposes a payroll tax on businesses to fund state workforce agencies.

SUTA

State Unemployment Tax Act - a tax that U.S. employers pay to their state to fund unemployment benefits.