When Purchasing Inventory,which Document Usually Triggers the Recording of a Liability

question 78

Multiple Choice

When purchasing inventory,which document usually triggers the recording of a liability?

• A)purchase requisition
• B)purchase order
• C)receiving report
• D)supplier's invoice

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Definitions:

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of the parties involved.

Patent

A legal right granted by the government to an inventor, giving them exclusive rights to make, use, or sell their invention for a certain number of years.

Trademark

An emblem, expression, or sequence of words formally protected or naturally sanctioned through employment to identify a business or item.

Brand Name

The distinctive title that identifies a product, service, or company, and differentiates it from competitors.