Question

Which of the following report(s) is (are) common to both the sales and the purchasing processes?

1) Cash receipts forecast and cash requirements forecast
2) Financial statement information
3) Discrepancy reports and bad dept report
4) None of the above

Answer 1

Common reports between sales and purchasing include cash receipts forecast, cash requirements forecast, financial statement information, and discrepancy reports such as the bad debt report. These reports are integral for both departments for managing finances and rectifying issues with transactions.

Step-by-step explanation:

The question centers on identifying which report(s) are common to both sales and purchasing processes within a business. Reports that typically span across both departments in a company include the cash receipts forecast and cash requirements forecast, financial statement information, and discrepancy reports including the bad debt report.

Cash receipts forecast and cash requirements forecast are crucial for both sales and purchasing as these forecasts ensure that a company maintains adequate liquidity and cash flow management. Financial statement information also plays a critical role for both departments to provide insights into the overall health and performance of the business, affecting decision-making in terms of investments and budget allocations. Discrepancy reports, like the bad debt report, help in identifying and resolving issues related to uncollected sales and problematic procurements, which have an impact on both sales revenue and purchase expenses.