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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

Which of the following best describes the purpose of a purchase requisition?

To record the receipt of goods from a supplier.

To track inventory levels in the warehouse.

To formally request the purchase of goods or services within an organization.

To authorize payment to a vendor for goods received.

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Verified step by step guidance

Understand the concept of a purchase requisition: A purchase requisition is a formal document used within an organization to request the purchase of goods or services. It is typically initiated by a department or individual needing the items.

Clarify the purpose of the purchase requisition: Its primary role is to communicate the need for goods or services to the purchasing department, ensuring proper authorization and documentation before proceeding with the purchase.

Differentiate the purchase requisition from other documents: For example, it is not used to record the receipt of goods (which is done using a goods receipt note), track inventory levels (handled by inventory management systems), or authorize payment to vendors (done through invoices and payment approvals).

Identify the correct description: Among the options provided, the correct purpose of a purchase requisition is 'To formally request the purchase of goods or services within an organization.' This aligns with its role in the procurement process.

Conclude the explanation: The purchase requisition is a critical internal control mechanism that ensures purchases are necessary, budgeted, and properly authorized before being executed.