question on accounts payable

purchase order

- document between buyer and seller issued by the buyer establishing price, delivery point, and other information regarding the purchase - good objectivity, externally generated but held by client

describe the basic acquisition and expenditure cycle

1- purchasing goods and services 2- receiving the good or service 3- recording the asset or expense and liability 4- paying the vendor

vendor's invoice

A bill sent from the vendor to the entity purchasing the goods or services

voucher

An authorization form prepared for each expenditure in a voucher system

bill of lading

`A contract between the shipper and the carrier; includes shipping information such as ship dates and origination, purchase order number, and signatures for receipt of merchandise.

receiving report

a document that records details about each delivery, including the date received, shipper, supplier, quantity received

significant accounts and assertions in the expenditure and acquisition cycle

accounts payable: completeness, existence, rights and obligations, and valuation expenses: completeness