What Happens to the Size (Number of Records) of the Customer

question 5

Multiple Choice

What happens to the size (number of records) of the customer master file when it is updated to reflect the customer's payment of an outstanding invoice?

• A) Decreases
• B) Increases
• C) Remains the same
• D) Cannot be determined

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Definitions:

COGS

Stands for Cost of Goods Sold and refers to the direct costs attributable to the production of the goods sold by a company.

Payables Turnover Rate

A liquidity metric that measures how quickly a company pays off its suppliers by dividing total purchases by average accounts payable.

Accounts Payable Balance

The amount of money a company owes to its suppliers or creditors for goods and services purchased on credit.

Sales

The exchange of goods or services for money, representing the primary revenue source for most businesses.