Select the function in the acquisitions and payment cycle where the requisition form and the purchase order forms are required before a transaction can be initiated.a.The recording of purchases function.b.The receiving of goods function.c.The payment preparation function.d.The ordering of goods function
Question
Select the function in the acquisitions and payment cycle where the requisition form and the purchase order forms are required before a transaction can be initiated.a.The recording of purchases function.b.The receiving of goods function.c.The payment preparation function.d.The ordering of goods function
Solution
The correct answer is d. The ordering of goods function.
Here's the step by step explanation:
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The acquisitions and payment cycle begins with the identification of a need for goods or services. This is usually done through a requisition form, which is a document that is used to formally request a purchase.
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Once the need is identified, the next step is to order the goods or services. This is done through a purchase order form. The purchase order is a legal contract between the buyer and the seller, specifying the details of the purchase, including quantity, price, and delivery date.
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Therefore, both the requisition form and the purchase order forms are required before a transaction can be initiated, which falls under the ordering of goods function.
The other functions - recording of purchases, receiving of goods, and payment preparation - come into play later in the cycle, after the goods have been ordered.
Similar Questions
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