Policies to Define the Role of Purchasing Do All of the Following

question 2

Multiple Choice

Policies to define the role of purchasing do all of the following except _____.

• A)detail the authority of purchasing to delegate certain tasks or assignments to other departments
• B)describe the areas where purchasing authority does or does not exist
• C)outline the overall authority of purchasing as granted by the executive committee while describing the limits to that authority
• D)exclude the purchasing function from any responsibility for purchasing such things as real estate, medical insurance policies, or other areas where purchasing may not have direct expertise
• E)define the reporting mechanism for buyers or other employees to report irregular business dealings

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Straight-Line Method

A method of calculating depreciation or amortization by evenly allocating the cost of an asset over its useful life.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period for accurate financial reporting.

Sold at a Discount

A transaction where goods or services are sold for a price lower than their usual or market rate.