Which of the following events does NOT require a journal entry to be made?
A) A supplier's invoice is received.
B) A purchase requisition is completed.
C) A purchase order is generated and delivered.
D) Both B and C are correct.

Question

Quizplus · Accepted Answer

Journal entries are required for actual financial transactions that affect the financial position of the company. Both completing a purchase requisition and generating a purchase order are preparatory steps in the purchasing process and do not represent actual financial transactions. Therefore, they do not require journal entries.

Which of the Following Events Does NOT Require a Journal