Which of the Following Statements Describes a Purchase Order

question 189

Multiple Choice

Which of the following statements describes a purchase order?

• A) It is an order to purchase goods from a supplier.
• B) It is a statement from the supplier showing the goods purchased and the amount due.
• C) It is a report showing that the goods have been received in good condition, as ordered.
• D) It is a document authorizing a payment to a supplier.

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Definitions:

Consumption Bundle

A combination of goods and services purchased by a consumer.

Total Utility

The overall satisfaction or benefit a consumer receives from consuming a particular amount of goods or services.

Gasoline

A volatile, flammable liquid derived from petroleum, primarily used as fuel in internal combustion engines.

Marginal Utility

The additional satisfaction or benefit (utility) that a person receives from consuming one more unit of a good or service.