Listed Below Are Steps of Purchasing and Receiving Materials

question 57

Multiple Choice

Listed below are steps of purchasing and receiving materials:
1) The receiving clerk prepares a receiving report.
2) Purchase requisitions are prepared to notify the purchasing agent that additional materials are needed.
3) The purchase of merchandise is recorded by the accounting department.
4) The purchasing agent completes a purchase order.
In which order would these events typically happen?

• A)4, 2, 3, 1
• B)2, 4, 3, 1
• C)2, 4, 1, 3
• D)4, 2, 1, 3

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Definitions:

Receivables

Amounts owed to a company by its customers for goods or services provided on credit.

Net Float

The difference between checks written against a bank account and those that have been deposited but not yet cleared, affecting the balance.

Chequing Account

A bank account allowing the account holder to withdraw funds, write checks, and use electronic debit to access funds.

Cheque

A cheque is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a named party.