The Finance Function Is Fairly Independent of Most Other Corporate

question 24

True/False

The finance function is fairly independent of most other corporate functions.Marketing decisions,for example,might affect the firm's need for funds but are not affected by conditions in financial markets or other financing issues.

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Definitions:

Periodic System

An inventory system where updates to inventory levels are made periodically, as opposed to continuously.

Voucher Systems

A control and documentation system used in accounting to process and monitor transactions.

Net Method

An accounting method where discounts for early payment are assumed to be taken and sales or purchases are recorded at their net of discount values.

Purchases Discount

Purchases discount is a reduction in the price paid for goods or services, often granted to a buyer when payment is made within a specified period.