Professional Documents
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Chapter 13-Manual Homework
Spring 2019
Place your answer after each question in this Word document and then
submit through Assignments in Blackboard using the naming convention:
Lastname_HWC13.
Expenditure cycle
Business activities
Request for goods/services, receiving goods and services, recognize
obligation and paying obligation
1. Requesting department – identify some need in the department
Prepare purchase requisition 3 and store it
Receive PO from purchasing department; so, they know items being
order by purchasing department. Also compare purchase requisition
with PO to verify information
Receive receiving report with items (sends copy 2 of receiving report
to A/P in order to verify goods)
2. Purchasing department
Receive purchase requisition 1
Activities:
Keep up approved vendor list
Best price for quality product from reliable vendor
See bankers for financial viability
Talk to customers to gage vendor reliability
Prepare purchase order – vendor copy of PO is binding contract
3. Receiving
PO3
Receives items - verify PO with bill of lading and packing slip. Then
accept items.
They recount items and verify condition of items
Prepare receiving report
Economic events
1. receiving of goods – voucher or vendor invoice used receiving dept
2. write check
Subcycles
Purchasing – requesting and purchasing dept
Receiving – receiving and requesting dept
Vouchering – AP
Cash disbursements – AP, cashier, treasury and mail room