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    Business
  3. Study Set
    Auditing and Assurance Services Study Set 1
  4. Exam
    Exam 18: Audit of the Acquisition and Payment Cycle: Tests of Controls and Substantive Tests of Transactions, and Accounts Payable
  5. Question
    At What Point Do Most Companies Recognize Liabilities in the Acquisition
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At What Point Do Most Companies Recognize Liabilities in the Acquisition

Question 7

Question 7

Multiple Choice

At what point do most companies recognize liabilities in the acquisition and payment cycle when the goods are shipped FOB Destination?


A) the issuance of a purchase order
B) receipt of acknowledgement of order by vendor
C) receipt of goods or services
D) the receipt of a vendor invoice

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