When a Business Is Making Its Initial Purchase of an Item

question 13

Multiple Choice

When a business is making its initial purchase of an item to be used to perform a new job, it is known as a ____ purchase.

• A) straight rebuy
• B) reciprocal
• C) delayed
• D) new task
• E) modified rebuy

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Definitions:

Cash Short

A situation where the actual cash on hand is less than the recorded amount in the accounting records, often resulting in a discrepancy during reconciliation.

Petty Cash Receipts

Documentation of small amounts of cash expenditures from a petty cash fund, used for minor business expenses.

Internal Control Problems

Weaknesses or failures in a company’s system of policies and procedures that govern its operations and financial reporting.

Gaps

Refers to missing elements or disparities in data, knowledge, or performance that need to be addressed.