PRC-1 · Chapter 2 · Question 26 of 100
In a manual accounting system, what is the core role of a 'Purchase Order'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It is a document sent by the business to a supplier to formally request goods or services.
Explanation
A purchase order is a commercial document issued by a buyer to a seller indicating types, quantities, and agreed prices. It is a request and does not trigger a double entry until the invoice is received.
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