Question

A receiving department compares inventory items received with copies of purchase orders. The purchase orders list the name of the vendor and do not list the quantities of the material ordered. Using the purchase orders, the receiving department is most likely to detect: ________________
a) Deliveries for which no purchase order was issued.
b) Unapproved sales orders.
c) Partial deliveries.
d) Deliveries of a greater quantity of items than those ordered.

Answer 1

Answer:

The correct option is (a)

Explanation:

Purchase order is an order that is issued by the buyer to the seller indicating types, quantity and rate of products intended to purchase.

Here, receiving department needs to compare inventory with purchase order. Purchase order constitutes only names of vendor. In this case, receiving department will be able to identify those deliveries for which purchase orders were not issued.

Since, quantity is not mentioned, partial deliveries cannot be detected. Similarly, greater quantity deliveries can also be not identified.