The Casselberry supplier credit agreement has a $300,000 limit and open commitments of $244,000. What status should purchasing report?
Correct Answer
C) credit available
Supplier credit status is based on credit limit less open commitments.
Why This Is the Correct Answer
Supplier credit status is based on credit limit less open commitments.
Why the Other Options Are Wrong
Option A: credit renewal open
credit renewal open puts the item in the wrong financial bucket, timing, base, or comparison for vendor credit status.
Option B: credit review closed
credit review closed puts the item in the wrong financial bucket, timing, base, or comparison for vendor credit status.
Option D: credit file posted
credit file posted puts the item in the wrong financial bucket, timing, base, or comparison for vendor credit status.
Memory Technique
Vendor Credit Status drawer for Purchasing Manager: label supplier before counting dollars.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Vendor Credit Accounts; use the stated business record or control rule to verify the answer.
More Business & Finance Questions
The Cedar Key subcontract closeout file requires 44 final releases, and 31 have been received. How many releases are missing?
A Florida GC prepaid $18,000 for annual insurance and expenses it evenly by month. After 7 months have expired, what prepaid asset remains?
The West Miami system access list starts with 22 active users, adds 4, and removes 7. How many active users should remain?
The Winter Park bank review shows a bank balance of $124,600, book balance of $119,400, and known timing items of $3,200. What unexplained difference remains?
The Riverview bank review shows a bank balance of $87,500, book balance of $90,400, and known timing items of $1,600. What unexplained difference remains?
A Satellite Beach contractor had 4 separations during the quarter and an average headcount of 32. What turnover rate should HR report?
A Winter Park startup budgets monthly overhead of $61,500 and wants a 4-month operating reserve. What reserve should be funded?
A Royal Palm Beach customer account has unpaid approved invoices of $126,000. Company policy requires review when unpaid invoices exceed $100,000. What status applies?
A Wildwood contractor had 9 separations during the quarter and an average headcount of 60. What turnover rate should HR report?
A Clermont field group had 64 absence hours out of 1280 scheduled hours. What absence rate should be reported?