Which of the Following Is the First Step in the Purchasing

question 52

Multiple Choice

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

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

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Definitions:

Trade Debtors

Individuals or entities who owe money to a company from goods or services provided on credit.

Forward Contracts

Financial derivatives contracts between two parties to buy or sell an asset at a specified future date for a price agreed upon today.

Option Contracts

Financial derivatives that give the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date.

Financial Liabilities

Obligations that require an entity to pay money or deliver financial assets to another party in the future, which can arise from borrowing, purchasing goods or services on credit, or issuing bonds.