Chapter 11, Problem 1TF

To determine

Indicate whether the given statement is true or false.

Answer to Problem 1TF

The given statement is false.

Explanation of Solution

Purchases: The amount of cost of merchandise bought during a certain period is referred to as cost of purchases.

Documents used in purchasing process:

• Purchase requisition
• Purchase order
• Receiving report
• Purchases invoice

Description: Purchase invoice is the last document prepared in the purchasing process, and purchase requisition is the first document. Hence, the statement is false.

Conclusion

Thus, the given statement is false, in stating that purchase invoice is the first document prepared in the purchasing process.