Which of the following statements best explains the relationship between the acquisition / payment process and the sales / collection process?
A)The same transaction can be considered part of both processes.
B)All organizations that have a sales / collection process also have an inventory acquisition / payment process.
C)Both A and B.
D)Neither A nor B.

Question

Quizplus · Accepted Answer

The acquisition/payment process involves obtaining inventory or other goods and paying the suppliers for them, while the sales/collection process involves selling the inventory or goods and collecting payment from customers. A single transaction, such as purchasing inventory and later collecting payment from customers who buy that inventory, can be considered part of both processes. Therefore, statement A correctly explains the relationship between the two processes. Statement B is incorrect, as not all organizations with a sales/collection process necessarily have an inventory acquisition/payment process (e.g. companies that provide services rather than physical goods).

Which of the Following Statements Best Explains the Relationship Between