EDI is the communication of electronic documents directly from a computer in one entity to a computer in another entity. EDI for business documents between unrelated parties has the potential to increase the risk of unauthorized third-party access to systems because more outsiders will have access to internal systems.

A document of title is usually issued by a bailee covering goods in the bailee's possession or care UCC 1-201). It represents ownership of the goods and is ordinarily needed to obtain the goods from the bailee. The two major types of documents of title are bills of lading issued by carriers) and warehouse receipts_ A warehouse receipt is issued by a person engaged in the business of storing goods for hire. Security for short-term inventory financing can be arranged if the debtor places its inventory under the control of the lender or its agent e.g., a public warehouse), and the lender holds the warehouse receipts.

A defined contribution plan provides benefits in exchange for services, provides an account for each participant, and specifies how contributions are to be determined. Post employment benefits depend only on contributions, returns on investment, and allocated forfeitures of other participants' benefits. Thus, employees have the benefit of gain and the risk of loss.

The entity has a dividend payout ratio of 25% of profit. Profit before taxes is US $85,000 [$500,000 sales - $250,000 CGS - $25,000 G&A expenses - $400,000 LT debt x 10% interest rate) - $600,000 fixed assets - 6 years)]. Hence, after-tax profit is US $42,500 [$85,000 x 1.0 - .5)], and the dividend payout is US $10,625 ($42,500 25%).
During the year ended December 31. an entity had US $500,000 in sales revenue and purchased US $150,000 of inventory. The cost of goods sold was US $250,000 for the year, and the entity incurred US $ 25.000 of general and administrative expenses. The January 1 opening balance sheet was as follows:

The cost of long-term debt financing is 10% per annum, payable in one installment on December 31 of each year. The entity has a 50% tax rate. The entity has a dividend payout ratio of 25%. The fixed assets were 1-year old at the start of the current year were originally estimated to have a 6-year useful life. and are being depreciated on the straightline basis.