Purchase requests and purchase orders are economic events,and as such they affect a company's financial position,and are recognized in the accounting records.

Question

Quizplus · Accepted Answer

Purchase requests and purchase orders are preparatory steps in the purchasing process and do not represent actual economic events that affect a company's financial position. They are not recognized in the accounting records until a transaction occurs (e.g., receipt of goods or services and the associated invoice).

Purchase Requests and Purchase Orders Are Economic Events,and as Such