BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Credit memo from supplier
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Invoice or bill from supplier
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Purchase order
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Purchase requisition
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Detailed explanation-1: -A PO (Purchase Order) is a buyer-generated document that authorizes a purchase transaction. When accepted by the seller, it becomes a contract binding on both parties.
Detailed explanation-2: -The supplier’s invoice is the source document for a purchase on credit transaction. The use of a purchases journal strengthens the audit trail. debit Accounts Payable and credit Purchases Returns and Allowances. A purchase of supplies on account should be recorded in the purchases journal.
Detailed explanation-3: -The correct option is It is a statement from the supplier showing the goods purchased and the amount due.
Detailed explanation-4: -The purchase order is a document generated by the buyer and serves the purpose of ordering goods from the supplier. The invoice, on the other hand, is generated by the supplier and shows how much the buyer needs to pay for goods bought from the supplier.
Detailed explanation-5: -A purchase order is a contract between the buyer and the seller and it gives specific information like product or services to be delivered, delivery date, and any other terms and conditions including the price. The purchase order is also called as ‘PO’ Inventory management just became much simpler with TallyPrime.