Question 1

In the procurement process,which department receives the Purchase Requisition?&#10;A)Sales&#10;B)Purchasing&#10;C)Warehouse&#10;D)Accounting

Accepted Answer

The Purchasing department receives the Purchase Requisition as it is responsible for procuring goods and services for the organization based on the requisition. The Sales department is responsible for selling the goods or services, the Warehouse department is responsible for storing and managing inventory, and the Accounting department is responsible for financial transactions and reporting.

Question 2

Which of the following payment terms means that payment is due in 30 days,but the payer will get a 3% discount if payment is made within 10 days?&#10;A)10%30/Net 10&#10;B)3%10/Net 30&#10;C)Net 10/30&#10;D)10%3/Net 30

Accepted Answer

Option B states that payment is due in 30 days (Net 30), but the payer will get a 3% discount if payment is made within 10 days (10/3). This is a common payment term in business and is known as "3/10, Net 30." It incentivizes the payer to make payment earlier and saves them money by getting the discount.

Question 3

Which of the following documents informs about the contents in a shipment?&#10;A)Invoice&#10;B)Purchase Order&#10;C)Goods Receipt Document&#10;D)Packing List

Accepted Answer

A packing list informs about the contents in a shipment. While an invoice provides information about the payment due and a purchase order is a document used to request goods or services to be supplied by a vendor. A goods receipt document confirms the receipt of goods and their condition.

Question 4

In the procurement process,which department creates the Purchase Requisition?&#10;A)Sales&#10;B)Purchasing&#10;C)Warehouse&#10;D)Accounting

Accepted Answer

The Warehouse department often initiates the Purchase Requisition process to replenish stock or request items necessary for operations. This document is then sent to the Purchasing department to start the procurement process.

Question 5

In the procurement process,which department receives the invoice and sends the payment?&#10;A)Sales&#10;B)Purchasing&#10;C)Warehouse&#10;D)Accounting

Accepted Answer

The accounting department typically receives the invoice and is responsible for making the payment.

Question 6

In the procurement process,which department creates the Purchase Order?&#10;A)Sales&#10;B)Purchasing&#10;C)Warehouse&#10;D)Accounting

Accepted Answer

The department responsible for creating Purchase Orders in the procurement process is the Purchasing department. They are responsible for managing the sourcing of materials, supplies or services from external sources, and managing supplier relationships. The Sales department focuses on selling products or services to customers, while the Warehouse department is responsible for inventory management and storage. The Accounting department is responsible for managing financial transactions, including the processing of Purchase Orders, but they do not create them.

Question 7

An invoice does not include which of the following data?&#10;A)price/cost&#10;B)F.O.B.Point&#10;C)quantity&#10;D)requested delivery date

Accepted Answer

An invoice typically includes the price/cost, F.O.B. point, and quantity of the items being billed but does not usually specify the requested delivery date, as this information is often part of the purchase order or shipping documentation.

Question 8

Which of the following documents identifies the material needed,the quantity needed,and the date it is needed?&#10;A)Invoice&#10;B)Goods Receipt Document&#10;C)Packing List&#10;D)Purchase Requisition

Accepted Answer

A Purchase Requisition is a document which identifies the material needed, the quantity needed, and the date it is needed. It is a request for goods or services, submitted by an employee/department to the purchasing department for approval and subsequent ordering. In contrast, an Invoice is a document issued by a vendor to a buyer, which lists the goods or services supplied and their prices, whereas a Goods Receipt Document is a record of the receipt of goods into inventory, and a Packing List is a document that lists the contents of a shipment and serves as a proof of delivery.

Question 9

Which of the following documents is an agreement to purchase?&#10;A)Invoice&#10;B)Purchase Order&#10;C)Goods Receipt Document&#10;D)Purchase Requisition

Accepted Answer

A purchase order is a document that outlines the specific terms and conditions agreed upon by the buyer and seller when a purchase is made. It serves as an agreement to purchase goods or services at a specified price and under certain terms and conditions. The other documents listed are not agreements to purchase, but rather serve different purposes in the procurement process.

Question 10

Which of the following documents is sent to accounting for payment?&#10;A)Invoice&#10;B)Purchase Order&#10;C)Packing List&#10;D)Purchase Requisition

Accepted Answer

An invoice is the document that states the details of the goods or services provided, along with the amount due for payment. This document is sent to the accounting department for payment processing. Purchase Orders and Purchase Requisitions are used to request goods, while a Packing List is used to identify the items included in a shipment.

Question 11

Which of the following documents verifies that the specified goods have been received?&#10;A)Invoice&#10;B)Purchase Order&#10;C)Goods Receipt Document&#10;D)Packing List

Accepted Answer

The answer of Which of the following documents verifies that...

Question 12

What is the only document where the quantity of the materials is not relevant?&#10;A)Purchase Order&#10;B)Goods Receipt Document&#10;C)Payment&#10;D)Purchase Requisition

Accepted Answer

The answer of What is the only document where the...

Question 13

A goods receipt does not include which of the following data?&#10;A)price/cost&#10;B)quantity received&#10;C)quantity ordered&#10;D)backorder quantity

Accepted Answer

The answer of A goods receipt does not include which...

Question 14

In the procurement process,which department creates the Packing List and Goods Receipt Document?&#10;A)Sales&#10;B)Purchasing&#10;C)Warehouse&#10;D)Accounting

Accepted Answer

The answer of In the procurement process,which department creates the...

Question 15

A purchase requisition does not include which of the following data?&#10;A)price/cost&#10;B)F.O.B.Point&#10;C)quantity&#10;D)requested delivery date

Accepted Answer

The answer of A purchase requisition does not include which...

Question 16

A purchase order does not include which of the following data?&#10;A)price/cost&#10;B)F.O.B.Point&#10;C)quantity&#10;D)requisition number

Accepted Answer

The answer of A purchase order does not include which...

Question 17

Which of the following is the correct sequence of steps in the Procurement Process?&#10;A)Create Requisition,Create & Send PO,Receive Shipment,Receive Invoice,Send Payment&#10;B)Create & Send PO,Receive Requisition,Receive Shipment,Receive Invoice,Send Payment&#10;C)Create & Send PO,Receive Shipment,Create Requisition,Receive Invoice,Send Payment&#10;D)Create Requisition,Create & Send PO,Receive Customer Acknowledgment,Receive Shipment,Receive Invoice

Accepted Answer

The answer of Which of the following is the correct...

Question 18

A packing list does not include which of the following data?&#10;A)price/cost&#10;B)weight&#10;C)quantity&#10;D)ship date

Accepted Answer

The answer of A packing list does not include which...

Question 19

How does the recipient of a shipment know which order the shipment is for?&#10;A)by referencing the order number included in the accompanying packing list&#10;B)by referencing the order number included in the accompanying purchase order&#10;C)by matching the material in the shipment with one of the unfilled purchase orders&#10;D)by performing a three-way match of key documents

Accepted Answer

The answer of How does the recipient of a shipment...

Question 20

Under which of the following payment terms is payment due in 30 days,but the payer will get a 1% discount if payment is made within 7 days?&#10;A)7%30/Net 10&#10;B)1%7/Net 30&#10;C)Net 7/30&#10;D)7%1/Net 30

Accepted Answer

The answer of Under which of the following payment terms...

Question 21

Payment terms are declared on what document?&#10;A)Invoice&#10;B)Purchase Order&#10;C)Goods Receipt Document&#10;D)Purchase Requisition

Accepted Answer

The answer of Payment terms are declared on what document?&#10;A)Invoice&#10;B)Purchase...

Question 22

What document is the only document created by the purchasing department?&#10;A)Invoice&#10;B)Purchase Order&#10;C)Goods Receipt Document&#10;D)Purchase Requisition

Accepted Answer

The answer of What document is the only document created...

Deck 3: A: The Procurement Process