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

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

Which document establishes an initial record of the receipt of inventory?

Invoice

Purchase order

Receiving report

Sales receipt

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Verified step by step guidance

Understand the purpose of each document mentioned in the problem: An invoice is a document sent by the seller to the buyer, detailing the goods or services provided and the amount due. A purchase order is a document created by the buyer to request goods or services from the seller. A sales receipt is a document provided by the seller to confirm payment and delivery of goods or services. A receiving report is a document used to record the receipt of inventory when it arrives at the buyer's location.

Identify the key requirement of the problem: The document that establishes an initial record of the receipt of inventory.

Recognize that the receiving report is specifically designed to document the receipt of inventory, including details such as quantity, condition, and any discrepancies between the order and the received goods.

Eliminate the other options based on their purpose: An invoice does not record the receipt of inventory; it is related to payment. A purchase order is used to initiate the purchase, not to record receipt. A sales receipt confirms payment, not inventory receipt.

Conclude that the correct document for establishing an initial record of the receipt of inventory is the receiving report.