Which of the Following Is the First Step in the Purchasing

question 50

Multiple Choice

Which of the following is the first step in the purchasing and payment process?

• A)The supplier ships the goods and sends an invoice to the purchaser.
• B)The purchaser sends a purchase order to the supplier.
• C)The purchaser sends a cheque to the supplier.
• D)The purchaser receives the inventory and prepares a receiving report.

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Definitions:

Selling Expenses

Costs incurred directly and indirectly from selling a product or service, including sales commissions, advertising, promotional materials, and the salaries of sales staff.

Budgeted Net Income

The estimated net income a company expects to earn over a specific period, as outlined in its budget.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used to assess whether a company has sufficient cash to fulfill its operations and obligations.

Budgeted Disbursements

Planned cash outflows for a specific period, including expenses, investments, and other payments.