ACCT 3140 Exam #2 Part 4

Which are types of purchases?

• Inventory (raw materials, WIP, finished goods)

• Fixed Assets (capitalized)

• Expenses (direct or indirect)

• Services (janitorial, legal)

What is the first step in the Purchasing Cycle?

• Prepare Purchase Requisition

• Decision--is purchase necessary? Authorize or reject purchase

• Select Vendor

• Prepare Purchase Order

• Inspect Incoming Shipment from Vendor

What is the second step in the Purchasing Cycle?

• Prepare Purchase Requisition

• Decision--is purchase necessary? Authorize or reject purchase

• Select Vendor

• Prepare Purchase Order

• Inspect Incoming Shipment from Vendor

What is the third step in the Purchasing Cycle?

• Decision--accept? Prepare receiving report or reject shipment

• Decision--is purchase necessary? Authorize or reject purchase

• Select Vendor

• Prepare Purchase Order

• Inspect Incoming Shipment from Vendor

What is the fourth step in the Purchasing Cycle?

• Decision--accept? Prepare receiving report or reject shipment

• Decision--is purchase necessary? Authorize or reject purchase

• Select Vendor

• Prepare Purchase Order

• Inspect Incoming Shipment from Vendor

What is the fifth step in the Purchasing Cycle?

• Decision--accept? Prepare receiving report or reject shipment

• Decision--is purchase necessary? Authorize or reject purchase

• Store Goods

• Prepare Purchase Order

• Inspect Incoming Shipment from Vendor

What is the sixth step in the Purchasing Cycle?

• Decision--accept? Prepare receiving report or reject shipment

• Decision--is purchase necessary? Authorize or reject purchase

• Store Goods

• Prepare Purchase Order

• Inspect Incoming Shipment from Vendor

What is the seventh step in the Purchasing Cycle?

• Decision--accept? Prepare receiving report or reject shipment

• Decision--is purchase necessary? Authorize or reject purchase

• Store Goods

• Prepare Purchase Order

• Inspect Incoming Shipment from Vendor

What is the ninth step in the Purchasing Cycle?

• Decision--accept? Prepare receiving report or reject shipment

• Decision--is purchase necessary? Authorize or reject purchase

• Store Goods

• Prepare Purchase Order

• Inspect Incoming Shipment from Vendor

A request to obtain goods from an authorized source. It is approved by the department manager and sent to the purchasing department.

• Purchase Requisition

• Purchase Order

• Blanket Purchase Order

• Three-Way Match

• Vendor Invoice