What Is the Main Reason a List of Potential Alternative

question 56

Multiple Choice

What is the main reason a list of potential alternative suppliers be maintained?

• A)in case the primary supplier is out of stock
• B)so the firm can sample different suppliers
• C)in case the primary supplier is more expensive
• D)to segregate purchasing suppliers

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Definitions:

Face Value

The face value or monetary amount shown on a financial document, like a bond or share certificate.

Accounts Receivable Turnover

A financial metric indicating how many times a company collects its average accounts receivable balance in a period.

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal, used to evaluate inventory for accounting purposes.

Aging Report

A report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding, typically used to identify issues with accounts receivable collection.