Question

Budd, the purchasing agent for Lake Hardware Wholesalers, has a relative who owns a retail hardware store. Budd arranged for hardware to be delivered by manufacturers to the retail store on a C.O.D. basis, thereby enabling his relative to buy at Lake's wholesale prices. Budd was probably able to accomplish this because of Lake's poor internal control over _________.A. Purchase requisitions.B. Cash receipts.C. Perpetual inventory records.D. Purchase orders.

Answer 1

Answer:

D. Purchase orders

Explanation:

A purchase order is a document legally binding a buyer and a sellerr. It is the official confirmation of an order.

It entails the details of the items the buyer agrees to buy at a certain price, the delivery date and terms of payment for the buyer.

Purchase orders includes details such as purchase order number, the shipping date, billing address, shipping address, quantities and price.

Purchase orders are used when buyers want to purchase goods from a seller, and helps sellers to track payment. It is prepared by the buyers.