What Is the First Step a Company Should Take When

question 22

Multiple Choice

What is the first step a company should take when evaluating requests for proposals?

• A)Carefully compare proposals against the proposed AIS requirements.
• B)Determine how much of a given proposal meets the desired AIS requirements.
• C)Eliminate proposals that are missing important information or fail to meet minimum requirements.
• D)Invite vendors to demonstrate their systems.

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.

Prepaid Expenses

Assets representing payments made in advance for goods or services to be received in the future.

Total Current Assets

The sum of all assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Receivables Turnover Ratio

A financial metric indicating how efficiently a company collects its receivables, calculated by dividing net credit sales by the average accounts receivable.