Question

What occurs when the physical quantity received is more than the quantity shown on the source document?

a) Over receipt
b) Under receipt
c) Excess receipt
d) Short receipt

Answer 1

The correct answer is c) Excess receipt. Excess receipt occurs when more items are received than are listed on the order document, affecting inventory management and accounting records.

Step-by-step explanation:

When the physical quantity received is more than the quantity shown on the source document, it is referred to as an excess receipt. This situation occurs when a supplier sends more items than were ordered or listed on the purchase order or invoice. It is important for inventory management and accounting to accurately record this discrepancy to maintain correct inventory levels and financial records. Therefore, the correct answer would be c) Excess receipt.