Asked by Krystina Marschall on Jun 17, 2024
Verified
Which document authorizes the purchase of the inventory from an approved vendor?
A) the purchase order
B) the petty cash voucher
C) the receiving report
D) the vendor's invoice
Purchase Order
An official document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
Approved Vendor
A supplier who has been vetted and meets a company's criteria for quality, reliability, and price.
- Acquire knowledge on the processes involved in purchasing inventory and receipt documentation.
Verified Answer
AC
Araceli CarmonaJun 19, 2024
Final Answer :
A
Explanation :
The purchase order is a document that authorizes the purchase of inventory from an approved vendor. It contains details about the products or services being purchased, the quantity, price, and delivery date. Once the vendor receives the purchase order, they use it to prepare an invoice for the transaction. The purchase order serves as a contract between the buyer and the seller, and helps ensure that both parties agree on the terms of the transaction before any money changes hands.
Learning Objectives
- Acquire knowledge on the processes involved in purchasing inventory and receipt documentation.