At what point do most companies recognize liabilities in the acquisition and payment cycle when the goods are shipped FOB Destination?
A) the issuance of a purchase order
B) receipt of acknowledgement of order by vendor
C) receipt of goods or services
D) the receipt of a vendor invoice

Question

Quizplus · Accepted Answer

Most companies recognize liabilities in the acquisition and payment cycle when they receive the goods or services, as this is when the obligation to pay is established, especially for goods shipped FOB Destination.

At What Point Do Most Companies Recognize Liabilities in the Acquisition