The purchasing transaction cycle for a merchandising company is:
A)Create Purchase Order Receive Inventory Record Bill Pay Bill Print Check
B)Create Invoice Receive Payment Record Deposits
C)Create Purchase Order Receive Payment Record Deposits
D)Create Invoice Receive Inventory Pay Bill Record Deposits

Question

The purchasing transaction cycle for a merchandising company is:
A)Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check
B)Create Invoice > Receive Payment > Record Deposits
C)Create Purchase Order > Receive Payment > Record Deposits
D)Create Invoice > Receive Inventory > Pay Bill > Record Deposits

Quizplus · Accepted Answer

The correct sequence for the purchasing transaction cycle for a merchandising company is to first create a purchase order indicating the details of the order to the supplier. Then, when the inventory is received, it needs to be recorded in the system, and the bill associated with it has to be recorded as well. After this, the company needs to pay the bill or the supplier, and finally, the check is printed to ensure that the payment has been made.

The Purchasing Transaction Cycle for a Merchandising Company Is