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Determine the Purchasing Procedures
Alarge company would use a "purchasing agent" who heads purchasing department. Small companies would use manager/owner, etc.
Seller receives order and sends an invoice (document which shows the name of buyer and seller, terms of sale, date, description, delivery, price, and total owed) sales and purchase invoice and merchandise.
When merchandise is received, it's checked against purchase order.
What do the "transfer" items in the notes to the financial statements relate to? (in the capital assets section; Plant, property & equipment and Intangible assets
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Define the term - LIABILITIES Liabilities are debts owed by business. Paying cash is generally not possible or convenient, so businesses purchase services and goods on credit.
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