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45. Which of the following statements islare false about the steps in a purchase transaction? * 1. The operating cycle of merchandising besiness invulves the purchase and sale of inventory as well as the subsequent payment for purchases and collection of cash. II. When certain items are needed, the user department fils in a purchase requisition form and sends it to the sales department. I The purchasing departiment prepares a sales order after checking with the price list, quotation, or catalogs of approved vendors. IV. After receiving the purchase order, the seller forwards an invoice to the purchaser upon shipment of the merchandise. V. Before approving the invoice for paymsent, the accounts payable department compates copies of the purchase requinition, purthase order, receiving report and invoice to ensure that quantities, description, and prices aree. O A. Il only O B. Il and I O C. II, III and IV O D. II, III, IV and V

45. Which of the following statements islare false about the steps in a purchase transaction? * 1. The operating cycle of merchandising besiness invulves the purchase and sale of inventory as well as the subsequent payment for purchases and collection of cash. II. When certain items are needed, the user department fils in a purchase requisition form and sends it to the sales department. I The purchasing departiment prepares a sales order after checking with the price list, quotation, or catalogs of approved vendors. IV. After receiving the purchase order, the seller forwards an invoice to the purchaser upon shipment of the merchandise. V. Before approving the invoice for paymsent, the accounts payable department compates copies of the purchase requinition, purthase order, receiving report and invoice to ensure that quantities, description, and prices aree. O A. Il only O B. Il and I O C. II, III and IV O D. II, III, IV and V

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 6MC: A company is trying to set up proper internal controls for their accounts payable/inventory...
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45. Which of the following statements islare false about the steps in a purchase transaction? 1. The operating cycle of merchandising buniness invulves the purchase and sale of inventory as well as the subsequent payment for purchases and collection of cash. I. When certain items are needed, the user department fils in a purchase requisition form and sends it to the sales department. I The purchasing departiment prepares a sales order after checking with the price list, quotation, or catalogs of approved vendors. IV. After receiving the purchase order, the seller forwards an invoice to the purchaser upon shipment of the merchandise. V. Belore approving the invoice for payment, the accounts payable department compares copies of the purchase requisition, purchase order, recoiving report and invoice to ensure that quantities, description, and prices apee. O A. Il only O B. Il and II O C. II, III and IV O D. II, III, IV and V
Transcribed Image Text:45. Which of the following statements islare false about the steps in a purchase transaction? 1. The operating cycle of merchandising buniness invulves the purchase and sale of inventory as well as the subsequent payment for purchases and collection of cash. I. When certain items are needed, the user department fils in a purchase requisition form and sends it to the sales department. I The purchasing departiment prepares a sales order after checking with the price list, quotation, or catalogs of approved vendors. IV. After receiving the purchase order, the seller forwards an invoice to the purchaser upon shipment of the merchandise. V. Belore approving the invoice for payment, the accounts payable department compares copies of the purchase requisition, purchase order, recoiving report and invoice to ensure that quantities, description, and prices apee. O A. Il only O B. Il and II O C. II, III and IV O D. II, III, IV and V
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