Which of the Following Is the First Step in the Purchasing

question 51

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 purchase receives the inventory and prepares a receiving report.

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Definitions:

Net Profit

The actual profit after operating expenses, interest, taxes, and depreciation have been deducted from total revenues; it is the bottom line of the income statement.

Shareholder Wealth

The total value of an investment in a company, often measured by the price of the company's stock multiplied by the number of shares owned.

C Corporations

A type of corporation in the U.S. that is taxed separately from its owners.

Proprietorship

A business owned and run by one individual where there is no legal distinction between the owner and the business.