US CMA Part 1 · Chapter 6 · Question 2 of 22
Which activity belongs to the expenditure (purchase-to-pay) cycle rather than the revenue cycle?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Receiving goods from suppliers and matching receiving reports to purchase orders
Explanation
The expenditure cycle covers requisitioning, purchasing, receiving, approving supplier invoices and paying suppliers. Credit approval, shipping and recording customer receipts are all part of the revenue (order-to-cash) cycle.
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