Question

If accounts payable receives an invoice directly from the supplier, does it need to be reconciled with the purchase order and receiving report.

a. True
b. False

Answer 1

It is true that an invoice received by accounts payable should be reconciled with the purchase order and receiving report to ensure the accuracy of financial records and control over expenses.

Step-by-step explanation:

When accounts payable receives an invoice directly from the supplier, it is considered a best practice to reconcile the invoice with the corresponding purchase order and the receiving report.

This process is crucial to ensure that the invoice reflects the goods or services actually ordered and received. Discrepancies between these documents could indicate errors or unauthorized charges, which need to be resolved before payment is processed. Thus, the statement is true, as reconciliation helps in maintaining accurate financial records and control over corporate expenses.