Which one of the following statements best describes the purpose of a purchase order?It is issued to a supplier to request supply of goods from them on terms specifiedwithin the orderAIt is issued to a customer to confirm the supply of goods to them on terms specifiedin the orderВIt is issued to a supplier as notification of paymentIt confirms the price that will be charged by a supplier for goods suppliedCD

Purchase Order: A company before purchasing goods invite qoutation of goods from suppliers. When…

Which one of the following statements best describes the purpose of a purchase order? A It is issued to a supplier to request supply of goods from them on terms specified within the order It is issued to a customer to confirm the supply of goods to them on terms specified in the order B It is issued to a supplier as notification of payment D It confirms the price that will be charged by a supplier for goods supplied

Which one of the following statements best describes the purpose of a purchase order? A It is issued to a supplier to request supply of goods from them on terms specified within the order It is issued to a customer to confirm the supply of goods to them on terms specified in the order B It is issued to a supplier as notification of payment D It confirms the price that will be charged by a supplier for goods supplied

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 3CYBK

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What document signals that a company should record thepurchase of goods on account?a. Purchase requisitionb. Purchase orderc. Receiving reportd. Supplier invoice
A company indicates the condition of goods obtained onwhich of the following documents?a. Purchase requisitionb. Purchase orderc. Receiving reportd. Supplier invoice
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.
The authority to accept incoming goods in receiving should be based on a(n)(1) vendor’s invoice. (3) bill of lading.(2) purchase requisition. (4) approved purchase order.
Which one of the following statements best describes the purpose of a goods despatched note? A It is issued by a customer returning faulty goods to their supplier. It is issued by a customer to their supplier and specifies the quantity and type of goods they require to be despatched. В It is issued by a supplier to their customer and specifies the quantity and type of goods delivered to that customer. C It is issued by a supplier to their customer and specifies what goods will be provided to them at a specified future date.
If the buyer is to pay the transportation costs of delivering the merchandise, delivery terms are stated as O A. FOB shipping point O B. FOB destination C. FOB shipping destination O D. FOB buyer
In a good internal control system, which of the following sets of documents is required for proper approval of a payment to a supplier? A. a journal entry, a supplier invoice, and a description of the goods being purchased B. a supplier invoice, a bill of lading, and the supplier's financial statements C. a purchase order, a journal entry, and a price catalog D. a receiving report, an invoice, and a purchase order
3 In accounting for consignment sales, sales revenue and the related cost of goods sold should be recognized by the Group of answer choices Consignor when the goods are shipped to the consignee Consignee when cash is received from the customer Consignor when notification is received that the consignee has sold the goods Consignor when the goods are shipped to the third party
When goods are sold on a bill-and-hold basis, what conditions must be met to recognize revenue upon receipt of the order?
In the sales 3-way match control procedure, which of the following invoice details are agreed to the customer purchase order and shipping document? O Invoice price, vendor, delivery date, quantity. O Invoice date, customer, description, quantity. O Invoice price, customer, delivery date, description, quantity. O Invoice price, vendor, date, description, quantity.
The authority to accept incoming goods in receiving should be based on a(an): Multiple Choice O vendor's invoice. materials requisition. bill of lading. approved purchase order.
If merchandise purchased on account is returned, the buyer may inform the seller of the details by issuing a(n)