An Accounting Policy That Requires a Purchasing Manager to Sign

question 36

Multiple Choice

An accounting policy that requires a purchasing manager to sign off on all purchases over $5,000 is an example of

• A) general authorization.
• B) specific authorization.
• C) special authorization.
• D) generic authorization.

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Definitions:

Net Present Value

A method used in capital budgeting to assess the profitability of an investment by calculating the present value of all cash inflows and outflows.

Rate Of Return

A financial ratio that calculates the profit or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Market Opportunities

Situations in which a company can meet an unsatisfied demand or can add unique value that customers will pay for in a particular market.