Which Document Is Least Important in Determining the Financial Value

question 96

Multiple Choice

Which document is least important in determining the financial value of a purchase?

• A)purchase requisition
• B)purchase order
• C)receiving report
• D)supplier's invoice

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Definitions:

Effective-Interest Method

A technique used in accounting to allocate the interest expense or income on a bond or loan over its lifetime, based on the effective interest rate rather than the stated rate.

Bonds

A fixed-income investment representing a loan made by an investor to a borrower, typically corporate or governmental, which includes terms regarding interest payments and the return of principal at maturity.

Issue Price

The price at which new shares, bonds, or other securities are offered to the public or to existing shareholders for the first time.

Interest Payable

A liability account showing the amount of interest expense that has been incurred but not yet paid out in cash.