Good Reasons for Allowing Other Departments to View Purchase Orders

question 69

Multiple Choice

Good reasons for allowing other departments to view purchase orders and incoming receipts does not include which of the following?

• A)The accounting department gains visibility to future accounts payable obligations.
• B)The requestor can refer to the purchase order number when inquiring into the status of an order.
• C)Receiving has a record of the order to match against the receipt of the material.
• D)Traffic becomes aware of inbound delivery requirements and can make arrangements with carriers or use the company's own vehicles to schedule material delivery.
• E)There is never a good reason for purchasing to allow other departments access to purchase orders and incoming receipts due to the confidential nature of the price and delivery terms.

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Definitions:

Received Payment

The money received by an individual or a company for goods delivered or services rendered.

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity, serving as the foundation of the double-entry bookkeeping system.

Customer on Account

Transactions where a customer purchases goods or services on credit, creating an account receivable for the business.

Financial Statement

A formal record of the financial activities of a business, person, or other entity, presenting its financial performance and position at a given point in time.