Regarding Electronic Data Interchange (EDI),which of the Following Statements Is

question 222

Multiple Choice

Regarding Electronic Data Interchange (EDI) ,which of the following statements is incorrect?

• A) A manager approves the invoice, and then an electronic fund transfer sends the retailer's payment to the supplier.
• B) The retailer electronically sends an invoice to the supplier.
• C) EDI procedures are used for both cash payments and cash receipts in many companies.
• D) When a retailer's inventory reaches a low level, the computer creates and sends an electronic purchase order to the supplier.

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Definitions:

Error

A mistake in the recording, classification, or processing of financial information.

Contra Revenue Account

An account used to record deductions from gross revenue, including sales returns, allowances, and discounts.

Revenue Account

An account that records the income generated by a business from its normal operational activities.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the appropriate period.