If You Accidentally Posted an Invoice to Fill a Purchase

question 26

Multiple Choice

If you accidentally posted an invoice to fill a purchase order, but never used the purchase order, you might -

• A) leave it - it does not matter
• B) look up the order and adjust it
• C) look up the order and remove it
• D) look up the invoice and pay the amount owing

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Definitions:

Cost Method

An accounting approach used for investments, where the investment is recorded at cost and adjustments are made for dividends received or permanent declines in value.

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks, that provide the holder with claims on the firm's profits.

Fair Value

The estimated price at which an asset would exchange hands between a willing buyer and seller, neither being under any pressure to act.

Available-for-sale Securities

Financial assets that are purchased with the intention of selling them before they reach maturity, if beneficial.