At What Point Do Most Companies Recognize Liabilities in the Acquisition

question 7

Multiple Choice

At what point do most companies recognize liabilities in the acquisition and payment cycle when the goods are shipped FOB Destination?

• A) the issuance of a purchase order
• B) receipt of acknowledgement of order by vendor
• C) receipt of goods or services
• D) the receipt of a vendor invoice

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Definitions:

Quality Of Education

A measure of how well education systems, institutions, and processes turn resources into learning outcomes and the development of students.

Revenue Potential

an estimate of the maximum sales revenue a business can achieve in a given market under current conditions.

Service Firms

Businesses that provide intangible products or services to consumers, as opposed to tangible goods.

Locations

In the context of operations management, it refers to the strategic positioning of facilities like factories or warehouses to optimize logistics and supply chain efficiency.