Which of the following statements is true about a purchase order? O a. It is a company's written offer to buy goods. O b. It is recorded as a purchase on its issue date by the purchasing company- O c. It is approved only after a supplier indicates acceptance of an order. O d. It is issued to a Purchasing Department by a Manufacturing Department.

Which of the following statements is true about a purchase order? O a. It is a company's written offer to buy goods. O b. It is recorded as a purchase on its issue date by the purchasing company- O c. It is approved only after a supplier indicates acceptance of an order. O d. It is issued to a Purchasing Department by a Manufacturing Department.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 6QY

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The following describes the expenditure cycle manual procedures for a hypothetical company.The inventory control clerk examines the inventory records for items that must be replenished andprepares a two-part purchase requisition. Copy 1 ofthe requisition is sent to the purchasing department,and Copy 2 is filed.Upon receipt of the requisition, the purchasingclerk selects a supplier from the valid vendor file (reference file) and prepares a three-part purchase order.Copy 1 is sent to the supplier, Copy 2 is sent to theAP department where it is filed temporarily, andCopy 3 is filed in the purchasing department.A few days after the supplier ships the order, thegoods arrive at the receiving department. They areinspected, and the receiving clerk prepares a threepart receiving report describing the number andquality of the items received. Copy 1 of the receivingreport accompanies the goods to the stores, wherethey are secured. Copy 2 is sent to inventory control,where the clerk posts it to…
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