Question

A company using a centralized database approach to data management might not maintain a relational table for ACCOUNTS PAYABLE. Rather, accounts payable balances at any point in time could be computed as the difference between the relations for which of the following continuous events?

A) Invoice generation and payment processing
B) Sales order creation and fulfillment
C) Inventory restocking and sales
D) Payroll processing and employee benefits distribution

Answer 1

Accounts payable balances can be computed by considering the continuous events of invoice generation and payment processing, without a separate relational table for ACCOUNTS PAYABLE in a centralized database system.

Step-by-step explanation:

The question pertains to how accounts payable balances can be computed using a centralized database approach without maintaining a separate relational table. The accounts payable at any given time can be calculated by considering the continuous events of invoice generation and payment processing. In essence, accounts payable represent the amount that a company owes to its creditors at any point, which can be computed as the total amount invoiced to the company for goods and services less the total payments it has made to suppliers.

This approach aligns with the fundamental accounting equation where liabilities (in this case, accounts payable) equal assets minus equity. By computing accounts payable based on the continuous events, the company can maintain the accuracy of its financial data without the need for a separate table, thus optimizing data management within its centralized database system.