Question

A purchase requisition is a common source document used to facilitate which business activity?

A) customer sale
B) receipt of goods
C) inventory purchase
D) purchase request

Answer 1

The correct option is D. purchase requisition is used to formally request the purchasing department to order goods or services, facilitating a purchase request.

Step-by-step explanation:

A purchase requisition is a document used internally within a company to formally request the purchasing department to order goods or services. It is part of the procurement process. This document typically includes information such as the description and quantity of goods or services, the intended use, and the date items are needed.

After approval, a purchase order is issued to the supplier to complete the transaction. Hence, the purchase requisition is a common source document used to facilitate a purchase request (D), which is the correct answer. This process is essential to ensure that the company maintains control over its expenditures and inventory levels.