PBL Session 2: Expenditure Cycle! Quiz

1. What document is this? Do you know? Are you sure?

Debit memo

Cheque

Invoice

Purchase Order

The document being referred to in the question is a purchase order. A purchase order is a document issued by a buyer to a seller, indicating the types, quantities, and agreed prices for products or services that the buyer wishes to purchase. It serves as a legally binding contract between the buyer and the seller and provides detailed information about the items to be purchased.

Explanation

The document being referred to in the question is a purchase order. A purchase order is a document issued by a buyer to a seller, indicating the types, quantities, and agreed prices for products or services that the buyer wishes to purchase. It serves as a legally binding contract between the buyer and the seller and provides detailed information about the items to be purchased.

2. Now, do you know what this is?

Receiving Report

Purchase Requisition

Purchase Order

Supplier Invoice

A purchase requisition is a document that is used by an employee to request the purchase of goods or services for the company. It outlines the details of the requested purchase, including the item description, quantity, and estimated cost. The purchase requisition is then submitted to the appropriate department or individual for approval before a purchase order is created. This document helps to ensure that all purchases are properly authorized and accounted for.

Explanation

A purchase requisition is a document that is used by an employee to request the purchase of goods or services for the company. It outlines the details of the requested purchase, including the item description, quantity, and estimated cost. The purchase requisition is then submitted to the appropriate department or individual for approval before a purchase order is created. This document helps to ensure that all purchases are properly authorized and accounted for.

3. What happens at the shipping department?

Absolutely nothing

Orders are made

Shipment are blind counted, inspected and recorded

At the shipping department, shipments are blind counted, inspected, and recorded. This means that the department receives the items to be shipped, counts them without knowing the exact quantity, inspects them for any damages or discrepancies, and then records the details of the shipment. This process ensures that the correct number of items are being shipped and that they are in good condition before being sent out.

Explanation

At the shipping department, shipments are blind counted, inspected, and recorded. This means that the department receives the items to be shipped, counts them without knowing the exact quantity, inspects them for any damages or discrepancies, and then records the details of the shipment. This process ensures that the correct number of items are being shipped and that they are in good condition before being sent out.

4. What document is not used in the Purchasing system?

Purchase Requisition

Purchase Order

Sales Order

Receiving Report

In a purchasing system, a sales order is not used. A sales order is a document used in the sales process to record the customer's request for goods or services. It is not relevant to the purchasing system, which focuses on acquiring goods or services from suppliers. The other options, such as purchase requisition, purchase order, and receiving report, are all documents commonly used in the purchasing system to initiate, track, and record the procurement process.

Explanation

In a purchasing system, a sales order is not used. A sales order is a document used in the sales process to record the customer's request for goods or services. It is not relevant to the purchasing system, which focuses on acquiring goods or services from suppliers. The other options, such as purchase requisition, purchase order, and receiving report, are all documents commonly used in the purchasing system to initiate, track, and record the procurement process.

5. This is a ______________________.

Supplier Invoice

Purchase Order

Receiving Report

Purchase Requisition

A receiving report is a document that is used to record the receipt of goods or services from a supplier. It typically includes information such as the date of receipt, the quantity received, and any discrepancies or damages noted. This document is important for the accounting and inventory management processes as it provides evidence of the goods received and allows for proper verification and reconciliation of invoices and purchase orders.

Explanation

A receiving report is a document that is used to record the receipt of goods or services from a supplier. It typically includes information such as the date of receipt, the quantity received, and any discrepancies or damages noted. This document is important for the accounting and inventory management processes as it provides evidence of the goods received and allows for proper verification and reconciliation of invoices and purchase orders.

6. What is a purchase order?

A document that identifies the requisitioner; specifies the delivery location and date needed

A document that formally requests a supplier to sell and deliver specified products at designated prices.

A document that indicates items have been formally received.

page 445

Explanation

page 445

7. Time for a harder question, what is the purpose of a purchase requisition?

Document form that formally requests a supplier to sell and deliver specified products at designated prices.

Document that indicates items have been formally received.

answer can be found on page 443 (text book)

Explanation

answer can be found on page 443 (text book)

8. A debit memo is used to:

Indicate items have been formally received.

Records the adjustments being requested when there is a case of damaged or poor quality goods.

Write an order to a bank to pay the amount specified from funds on deposit

page 448

Explanation

page 448

9. A voucher package consists of a vendor invoice and supporting documentation (purchase order and receiving report).

True

False

I have no idea

page 450

Explanation

page 450

10. How many copies of purchase requisition forms does Northern Manufacturing Co make?

2

3

4

Northern Manufacturing Co makes three copies of purchase requisition forms.

Explanation

Northern Manufacturing Co makes three copies of purchase requisition forms.