Question

In regards to the AP department, which statement is NOT true?

1) The purchase requisition shows that the transaction was authorized
2) The purchase order proves that the purchase was required
3) The receiving report provides evidence of the physical receipt of the goods
4) The supplier's invoice indicates the financial value of the transaction

Answer 1

The statement that "The purchase order proves that the purchase was required" is NOT true in relation to the AP department. A purchase order is an official confirmation of the purchase and not proof of the need for the purchase. Other documents like the purchase requisition, receiving report, and supplier's invoice serve different functions.

Step-by-step explanation:

In regards to the AP department, the statement that is NOT true is that "The purchase order proves that the purchase was required." This statement is not accurate because the function of a purchase order is not to prove that the purchase was required, but rather to confirm that a purchase has been officially placed. It details the items the buyer agrees to purchase at a certain price point and under certain terms.The purchase requisition is a document that an employee within an organization fills out to request goods or services. This requisition shows that the transaction was authorized internally before purchasing.

The receiving report provides evidence of the physical receipt of the goods, indicating that the goods ordered have been delivered and accepted by the buyer.The statement that is NOT true in regards to the AP (Accounts Payable) department is 2) The purchase order proves that the purchase was required. While the purchase order is a document that shows the details of the requested purchase, it does not necessarily prove that the purchase was required. It simply serves as a formal request for the purchase.The other statements are true:The purchase requisition shows that the transaction was authorized. A purchase requisition is a document that initiates the procurement process and signifies that the transaction was authorized.The receiving report provides evidence of the physical receipt of the goods. A receiving report is generated when goods are received, and it serves as evidence that the goods were physically received.Lastly, the supplier's invoice indicates the financial value of the transaction, detailing the costs of the goods or services provided.