Which of the Following Statements Is Correct

question 77

Multiple Choice

Which of the following statements is correct?

• A) The purchase requisition is the form sent to a supplier to order goods.
• B) The Purchases account is reported as an asset on the balance sheet.
• C) To the customer,a supplier's invoice is a purchase order invoice.
• D) The credit terms,2/10,n/30,allow the customer to take a 2 percent discount if payment is made within 10 days of the invoice,otherwise payment is due in full in 30 days.

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Definitions:

ASPE

Accounting Standards for Private Enterprises; these are simplified accounting principles for private companies in Canada, allowing them to prepare financial statements without adhering to the more complex IFRS.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.

Current-rate Method

A method used in financial reporting to convert the financial statements of a foreign subsidiary to the parent company's currency by applying the current exchange rate.

British Tweeds

High-quality traditional British woven fabrics known for their distinctive patterns, durability, and use in classic clothing.