PRC-1 · Chapter 2 · Question 11 of 100
The warehouse manager at 'Pioneer Manufacturing' needs raw materials that are currently out of stock. Which internal document should he prepare to initiate the purchasing process?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Purchase requisition
Explanation
A purchase requisition is an internal document prepared by a department (like the warehouse) to formally notify the purchasing department that an item is needed and to authorize its purchase.
More Books of Prime Entry MCQs
- Q13A customer pays an invoice of Rs. 200,000 within the discount period and is allowed a 5% settlement discount. What amounts are recorded in…
- Q14At the end of the financial year, 'Vertex Corp' needs to record its annual depreciation expense of Rs. 150,000. Which book of prime entry…
- Q15Which of the following activities best describes the fundamental purpose of 'books of prime entry'?
- Q16'Silverline Merchants' sold goods for physical cash amounting to Rs. 45,000. How is this transaction initially recorded?
- Q17Which of the following is NOT considered a source document for entering data into the accounting system?
