Which Is the Correct Label for the Blank Transformation Process

question 1

Multiple Choice

Which is the correct label for the blank transformation process circle in the data flow diagram below?

• A)1.2 Check Credit
• B)1.2 Enter Order in Sales Journal
• C)1.2 Does Customer Have Credit?
• D)1.2 Salesperson Approves

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Definitions:

Perpetual Inventory System

A method of accounting for inventory that records real-time transactions of goods as they come in and out of stock, thus maintaining a continuously updated inventory balance.

Periodic System

A method of inventory valuation for financial statements where purchases during the period are recorded directly to an inventory account and the cost of goods sold is determined at the end of the accounting period.

Purchase Discounts

A reduction in the purchase price, allowed by the seller to encourage early payment by the buyer.