Deck 9 Flashcards Preview

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Flashcards in Deck 9 Deck (19):
1

Cost of quick payment discount =

(360/pay period - disc. period) x (Disc. percentage/1 - disc. percentage)

2

Zero-Balance Accounts

Maintains a zero balance; helps to slow cash disbursements

3

Cash Conversion Cycle =

Inventory conversion period + Receivables collection period - Payables deferral period

4

Largest source of short-term credit is

Trade credit

5

Maintain safety stock to:

Ensure that manufacturing or customer supply requirements are met

6

Reorder point =

Safety stock + (Lead time x sales during lead time)

7

Economic order quantity definition and major assumption

Minimize both ordering and carrying costs; assumes that demand is known

8

Economic Order Quantity =

Square root of ((2 x annual sales x order cost) / Carrying cost per unit)

9

Operating profit is also known as

Earnings before interest and taxes

10

Batch processing

Transactions are processed in batches periodically; presumes grouping before posting

11

An advantage of real time processing over batch processing:

Timeliness of information

12

4 major functions of transaction processing include:

Data input, data storage, data processing, and information output

13

What kind of system best describes a payroll system?

Transaction processing system

14

What is the correct ascending hierarchy of data in a system?

Character, field, record, file, database

15

Ad Hoc Report

Report that is created on demand to meet unique specifications

16

How many paragraphs should you write for the written part?

3-5; intro, body, and conclusion

17

Internal Rate or Return

Discount rate where NPV equals zero

18

Enterprise Resource Management

Comprehensive approach to evaluating and accepting risk

19

Internal Environment consists of the following

Integrity and ethical values; commitment to competence, organizational structure