Further Treatment of Purchase of Business - Vendor’s Account - SS3 Accounting Past Questions and Answers - page 1
What is the purpose of a vendor's account?
To manage a business's relationships with its suppliers or vendors
To manage a business's relationships with their customers
To manage a business's internal operations
What financial terms may be established when setting up a vendor's account?
Shipping rates and delivery schedules
Payment due dates and interest rates
Employee salaries and benefits
How does a vendor typically invoice a business for goods or services provided?
By sending an email
By calling the business
By sending a physical invoice through the mail
What can reporting features in a vendor's account allow businesses to do?
Analyze their spending patterns and identify areas for improvement
Manage their internal operations and workflows
Track customer interactions and behaviour
What benefits can a vendor's account provide for a business?
A way to track their purchases and manage their financial obligations
A way to manage their customer relationships and sales
A way to track employee productivity and performance
What type of financial terms may be established between a business and a vendor when setting up a vendor's account?
Payment due dates, interest rates, and credit lines are some examples of financial terms that may be established between a business and a vendor when setting up a vendor's account.
Why is it important for businesses to track their purchases over time using a vendor's account?
Tracking purchases over time can be useful for budgeting and financial planning, as it allows businesses to analyze their spending patterns and identify areas where they can improve their purchasing processes.