A Materials Requisition Is a Source Document Used by Materials

question 129

True/False

A materials requisition is a source document used by materials managers of a manufacturing company to order raw materials from suppliers; it serves the same purpose as a purchase order in a merchandising company.

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Definitions:

Financial Statement

Documents that report on a company's financial performance, position, and cash flows, providing insights to stakeholders about its financial health.

Bad Debt Expense

An expense recorded by businesses to account for invoices that are unlikely to be paid by customers.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year.

Cash Equivalents

Short-term, highly liquid investments that are easily convertible to known amounts of cash with original maturities of three months or less.