Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following is usually NOT included in a purchase order?

Payment terms

Quantity of goods ordered

Description of items

Invoice number

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Verified step by step guidance

Understand the purpose of a purchase order: A purchase order is a document issued by a buyer to a seller, indicating the items, quantities, and agreed prices for products or services the buyer intends to purchase. It serves as a formal request and a legal offer to buy.

Review the typical components of a purchase order: Common elements include payment terms (e.g., net 30 days), quantity of goods ordered, description of items, shipping details, and the agreed price. These details ensure clarity and prevent disputes between the buyer and seller.

Analyze the role of an invoice number: An invoice number is a unique identifier assigned to a seller's invoice, which is issued after the purchase order is accepted and the goods or services are delivered. It is not part of the purchase order itself, as it pertains to the seller's documentation.

Compare the listed options with the components of a purchase order: Payment terms, quantity of goods ordered, and description of items are standard elements of a purchase order. However, the invoice number is not included because it is part of the seller's invoicing process.

Conclude that the correct answer is 'Invoice number,' as it is not typically included in a purchase order but is instead part of the seller's post-sale documentation.