A Receiving Department Receives Copies of Purchase Orders for Use

question 203

Multiple Choice

A receiving department receives copies of purchase orders for use in identifying and recording inventory receipts. The purchase orders list the name of the vendor and the quantities of the materials ordered. A possible error that this system could allow is:

• A) Payment to unauthorized vendors.
• B) Payment for unauthorized purchases.
• C) Overpayment for partial deliveries.
• D) Delay in recording purchases.

---

Definitions:

Aggregate Supply

The total supply of goods and services that firms in an economy are willing to sell at a given price level in a given time period.

Investment

The purchase of goods that are not consumed today but are used in the future to create wealth, including assets like property, stocks, or bonds.

Aggregate Demand Curve

Curve showing planned purchase rates for all goods and services in the economy at various price levels.

Price Level

An index that measures the average price of goods and services in an economy at a specific time.