Question

describe the purpose of a purchase order by selecting the correct statement(s) below. (check all that apply.)-A purchase order authorizes a vendor to ship ordered merchandise at a stated price and terms.-A purchase order is a document the purchasing department uses to place an order with a vendor.-Multiple copies of the purchase order are distributed to other departments to increase internal control of company purchases.

Answer 1

A purchase order authorizes vendors, is used by purchasing departments for orders, and increases internal control by distributing copies to various departments.

Step-by-step explanation:

The purpose of a purchase order is multi-faceted in business operations. Firstly, a purchase order authorizes a vendor to ship ordered merchandise at a stated price and terms, ensuring that both the buyer and seller have agreed upon the transaction details. Secondly, it functions as a document the purchasing department uses to place an order with a vendor, formally recording the requirements of the buyer. Lastly, the dissemination of multiple copies of the purchase order to various departments within a company serves to increase internal control of company purchases by keeping relevant parties informed and maintaining checks and balances over the procurement process.

Answer 2

A purchase order is a formal document that authorizes a vendor to supply goods or services and establishes clear expectations between the buyer and the seller. It also serves as a tool for internal control and accurate record-keeping.

Step-by-step explanation:

A purchase order is a document that serves as a formal request to a vendor to supply certain goods or services. It is a legally binding contract between the buyer and the seller, specifying the details of the purchase such as the quantity, price, delivery date, and terms of payment.

The purpose of a purchase order is to streamline the purchasing process, ensure accurate record-keeping, and establish clear expectations between the buyer and the seller. It also serves as a tool for internal control by providing a documented trail of the purchases made by the company.

The correct statements regarding the purpose of a purchase order are:

• A purchase order authorizes a vendor to ship ordered merchandise at a stated price and terms.
• A purchase order is a document the purchasing department uses to place an order with a vendor.
• Multiple copies of the purchase order are distributed to other departments to increase internal control of company purchases.