PRC-1 · Chapter 2 · Question 84 of 100
In the context of the purchases cycle, what is the role of a 'Supplier's Statement of Account' sent at month-end?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) It allows the business to reconcile its own payable ledger balance with the supplier's records.
Explanation
The statement of account is a summary, not a source document for initial entry. It is used as a checking mechanism to ensure all invoices and payments have been matched correctly.
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