A report telling how well all approved vendors have performed in the prior 12 months is information ...........

General Accounting Principles Accounting as a financial information system

A report telling how well all approved vendors have performed in the prior 12 months is information that is MOST needed in which business process?

Paying vendors

Acquiring inventory

Selling merchandise

Paying employees

छोटे Courses बड़े Results

Master Accounting as a financial information system

Prepare through Micro-courses

Try Now

Explanation:

Inventory is merchandise purchased by merchandisers (retailers, wholesalers, distributors) for the purpose of being sold to customers. The cost of the merchandise purchased but not yet sold is reported in the account Inventory or Merchandise Inventory. Inventory is reported as a current asset on the company's balance sheet. Inventory is a significant asset that needs to be monitored closely. Too much inventory can result in cash flow problems, additional expenses (e.g., storage, insurance), and losses if the items become obsolete. Too little inventory can result in lost sales and lost customers.