For the Copy of the Purchase Order That Goes to the Receiving

question 77

Multiple Choice

For the copy of the purchase order that goes to the receiving department, it is best to

• A)leave off the description of the goods ordered.
• B)leave off the quantity of the goods ordered.
• C)leave off the name of the vendor.
• D)have the receiving department forward all copies of the purchase order to accounts payable.

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Definitions:

Supplies Expense

The cost associated with the consumption of supplies used in the operations of a business during an accounting period.

Equipment

Fixed assets used in operations, such as machinery, computers, and furniture, which have a useful life of more than one accounting period.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to update account balances before preparing financial statements, aligning them with the accrual basis of accounting.

Current Assets

Holdings that are projected to be liquidated, traded, or used up within twelve months or over the course of the operating cycle, depending on which timeframe is more extended.