Before a new vendor is added into the vendor master file (or the purchasing master file),the company should
A)conduct a credit check on the new vendor.
B)have the vendor detail matched against the invoice detail.
C)ask the purchasing manager to verify the authenticity of the vendor.
D)have the accounting department enter the necessary detail about the vendor.

Question

Quizplus · Accepted Answer

Conducting a credit check on the new vendor is important to ensure that the vendor has a good financial standing and is capable of delivering goods and services according to the company's requirements. This helps to minimize the risk of doing business with unreliable vendors who may not be able to deliver on their promises. The other options may also be important in the vendor setup process, but conducting a credit check should be a priority.

Before a New Vendor Is Added into the Vendor Master