A)Describe each of the four business functions that comprise the acquisition and payment cycle.B)Describe the key documents used in processing purchase orders for the acquisitions and payment cycle.C)Discuss the key documents and records used in recognizing the liability function in the acquisitions and payment cycle.

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The Answer is A)The four business functions that comprise the acquisition and payment cycle are:
•Processing purchase orders.This function involves the preparation of a purchase requisition and a purchase order to acquire goods and services.
•Receiving goods and services.When goods are received,a receiving report is prepared that indicates the description of goods,the quantity received,the date received,and other relevant data.
•Recognizing the liability.In most companies,the liability for acquisitions is recognized when the goods and services are received;in other companies,it is deferred until the vendor's invoice is received.
•Processing and recording cash disbursements.This function involves the signing and mailing of the cheque for payment of the acquisition and recording of the cash disbursement in the cash disbursements journal.
B)The key documents and files used in processing purchase orders in the acquisitions and payment cycle are:
•Purchase requisition.This is a request by an authorized employee to the purchasing department to place an order for inventory and other items used by an entity.
•Purchase order.This is prepared by the purchasing department indicating the description,quantity,and related information for goods and services that the company intends to purchase.
C)The key documents and records used in the recognizing the liability function in the acquisitions and payment cycle are:
•Vendor's invoice.This document,sent by the vendor,indicates the description and quantity of goods and services received,price including freight,cash discount terms,and date of the billing.
Debit Memo.This document is used to indicate a reduction in the amount owed to a vendor because of returned goods or an allowance granted.
Voucher.Is commonly used by organizations to establish a formal means of recording and controlling acquisitions,primarily by enabling each acquisition transaction to be sequentially numbered.
Acquisitions Transaction File.This is a computer-generated file that includes all
acquisition transactions processed by the accounting system for a period,such as a
day,week,or month.It includes information for each transaction,such as vendor name,date,amount,account classification or classifications,and description and quantity of goods and services purchased.
Acquisitions Journal or Listing.The acquisitions journal or listing,often referred to as
the purchases journal,is generated from the acquisitions transaction file and typically
includes the vendor name,date,amount,and account classification or classifications
for each transaction,such as repair and maintenance,inventory,or utilities.
Accounts Payable Master File.An accounts payable master file records acquisitions,
cash disbursements,and acquisition returns and allowances transactions for each vendor.
The master file is updated from the acquisition,returns and allowances,and cash
disbursement computer transaction files.
Accounts Payable Trial Balance.An accounts payable trial balance listing includes
the amount owed to each vendor or for each invoice or voucher at a point in time.It
is prepared directly from the accounts payable master file.
Vendor's Statement.A vendor's statement is a document prepared monthly by the
vendor and indicates the beginning balance,acquisitions,returns and allowances,
payments to the vendor,and ending balance.

A)Describe Each of the Four Business Functions That Comprise the Acquisition