The Purchase Order

question 37

Multiple Choice

The purchase order

• A)is the source document to make an entry into the accounting records
• B)indicates item description, quantity, and price
• C)is prepared by the inventory control department
• D)is approved by the end-user department

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Definitions:

Absolute Efficiency

A state where resources are allocated in the most effective way possible, achieving maximum output with given inputs.

Natural Endowment

Resources found in nature that have economic value or utility, such as minerals, forests, and water.

Merchandise Trade Deficit

A situation where a country's imports of goods exceed its exports of goods, leading to a negative balance of trade.

Record

A document or electronic file that systematically captures and preserves information or data for future reference or analysis.