Aggregating the Catalogs of All Approved Suppliers and Combining Them

question 59

True/False

Aggregating the catalogs of all approved suppliers and combining them into a single electronic catalog is an effective solution for internal procurement because it minimizes maverick buying.

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Definitions:

Adjusting Entries

Transactions recorded at the end of the accounting interval to appropriately allocate profits and expenditures to the period they originated.

Unearned Revenue

Income received by a company for goods or services yet to be provided or delivered; it is recorded as a liability on the balance sheet until the service or product is delivered.

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Expenses

Costs incurred in the process of earning revenue, typically including things like rent, salaries, and utilities.