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:

Compounded Annually

The process where the interest earned on an investment is added to the principal sum at the end of each year, so that the interest in the next year is calculated on the principal plus previously accumulated interest.

Lump Sum

A large single payment made at a particular time, as opposed to multiple payments made over time.

Rate Of Return

The increase or decrease in value of an investment over a certain period, shown as a percent of the investment's original cost.

Compounded Annually

The process where the interest earned on an investment is reinvested, and future interest payments are calculated on the principal plus previously earned interest.