A Purchase Order Prepared Under an Existing Contract or Scheduling

question 103

Multiple Choice

A purchase order prepared under an existing contract or scheduling agreement is called a

• A) consignment purchase order.
• B) stock transport purchase order.
• C) standard purchase order.
• D) release order.

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Definitions:

Net Sales

The amount of revenue generated by a company after accounting for returns, allowances, and discounts.

Unadjusted Trial Balance

A preliminary list of all accounts with their balances before any adjustments are made for the end of the accounting period.

Periodic Inventory System

An inventory accounting system where updates to the inventory accounts are made on a periodic basis, rather than continuously.

Merchandise Inventory

Items that a company holds for the purpose of resale to customers in the ordinary course of business.