Which of the following is the most likely order of a basic purchases activity model?
A)Analyze Inventory→Place Purchase Order→Send Payment.
B)Request prices and availability→Receive Items→Record Accounts Payable.
C)Request prices and availability→Place Purchase Order→Receive Items→Send Payment.
D)Create Purchase Order→Create Journal Entry→Receive Items→Send Payment.

Question

Quizplus · Accepted Answer

The most likely order of a basic purchases activity model is to first request prices and availability, then place the purchase order, receive items, and finally send payment. This ensures that the correct items are ordered and received before payment is made. Additionally, recording accounts payable (as in option B) typically occurs after receiving items, not before. Option A is missing the step of actually placing the purchase order, and option D has the step of creating a journal entry which is not typically part of the basic purchases activity model.

Which of the Following Is the Most Likely Order of a Basic