Question

Your company purchased inventory from a vendor on account. What are the names of the three documents matched before recording the purchase in the accounting records?

a) Invoice, purchase order, receiving report

b) Purchase order, invoice, voucher

c) Invoice, receipt, check

d) Check, purchase order, receiving report

Answer 1

The three documents matched before recording a purchase in the accounting records are a purchase order, invoice, and voucher.

Step-by-step explanation:

The answer is b) Purchase order, invoice, voucher.

When a company purchases inventory from a vendor on account, there are three documents that are typically matched before recording the purchase in the accounting records:

1. Purchase order: This is a document issued by the buyer to the vendor, specifying the details of the goods or services being ordered.
2. Invoice: This is a document issued by the vendor to the buyer, indicating the amount owed for the goods or services provided.
3. Voucher: This document is created by the buyer to authorize payment to the vendor. It includes the details of the purchase order and invoice, and is used to record the transaction in the accounting system.