In the Expenditure Cycle,Financial Electronic Data Interchange (FEDI)increases Efficiency by

question 43

Multiple Choice

In the expenditure cycle,Financial Electronic Data Interchange (FEDI) increases efficiency by

• A)eliminating the need for receiving reports.
• B)eliminating the need for vendor invoices.
• C)eliminating the need for purchase orders.
• D)eliminating the need to prepare and mail checks.

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Definitions:

Required Return

The minimum expected return an investor demands to compensate for the risk of an investment.

Plowback Ratio

The proportion of earnings retained by a company rather than distributed to its shareholders as dividends.

P/E Multiple

Also known as Price-to-Earnings Ratio, it compares a company's share price to its per-share earnings, used to evaluate if a stock is over or undervalued.

EPS

EPS stands for Earnings Per Share, a financial ratio that measures the amount of a company's profit that is allocated to each individual share of its common stock.