The point at which most companies first recognize the acquisition and related liability on their records is when the
A)purchase requisition is completed.
B)purchase order is completed.
C)receiving report is completed.
D)vendor's invoice is paid.

Question

Quizplus · Accepted Answer

The receiving report indicates that the company has received the goods or services ordered, which is the point at which most companies recognize the acquisition and related liability on their records. This is because the receipt of goods or services completes the transaction from the buyer's perspective, making it the appropriate time to record the acquisition and the associated liability.

The Point at Which Most Companies First Recognize the Acquisition