April 26, 2022/ Steven Bragg
A receiving report is used to document the contents of a delivery to a business. The form is filled out by the receiving staff of the business accepting the delivered goods. The following information is typically included on a receiving report: Date and time on which the delivery was received Name of the shipping company that delivered the goods Name of each item received Quantity of each item received The authorizing purchase order number, if noted on the delivery documentation or box Condition of the items received. This can be a negative entry, where only damaged goods are noted. A master copy of each receiving report is stored in the
receiving department. Copies are sent to other departments as required by company procedures, such as the copy sent to the payables staff to document received goods. From a control perspective, it can be useful to uniquely number each receiving report. The sequence of numbers can then be examined to see if any receiving reports are missing. The receiving report can be used
in several ways. For example, if certain goods are to be returned, the receiving report documents the reason for the return, such as damaged goods. As another example, the receiving report can be used as evidence of receipt in the three-way matching process. This approach is more commonly used for larger-dollar purchases. Finally, the accounting staff may use receiving reports that were completed near month-end to accrue expenses for supplier invoices that have not yet arrived. Which of the following is generally not shown on a receiving report?a. price of the itemsb. counted and inspected byc. quantity of the itemsd. purchase order number A receiving clerk notes that a delivery of 10 units has been received, but the purchase order specified 12units. A debit memo will need to be prepared to adjust for the difference between the quantity ordered andreceived. Who should prepare this document? The Gwallter Reece Chihuahua Sweater Co. (GRCCo) was established in 2013. It recently signed a largecontract with PetCo pet stores. GRCCo will be required to track and forecast sweater sales by linking in toPetCo's sales database. GRCCo will then be responsible for shipping products to PetCo as needed. Therelationship between GRCCo and PetCo is an example of The receiving clerk at Wattana Technologies examines incoming shipments and checks their purchaseorder numbers. A receiving report is then sent to accounts payable, where it is reconciled with the relevantpurchase orders and invoices and payment is authorized. Which of the following would correct controlweaknesses related to the clerk's activities? The first major business activity in the expenditure cycle is a. receiving goods from vendors.b. shipping goods to customers.c. ordering inventory, supplies, or services. Vendor invoices are approved by the ________, which reports to the ________. MacDougalKids is a mid-sized manufacturer of organic baby food. MacDougalKids uses the EOQinventory management approach. Which of the following factors would likely be least important whenselecting inventory suppliers? 24) Which of the following is generallynotshown on a receiving report?A) price of the itemsB) quantity of the itemsC) purchase order numberD) counted and inspected byAnswer:A Page Ref: 384Objective:Learning Objective 1Difficulty :EasyAACSB:Analytic25) A receiving clerk notes that a delivery of 10 units has been received, but the purchase order specified12 units. A debit memo will need to be prepared to adjust for the difference between the quantity orderedand received. Who should prepare this document?DPage Ref: 385 Objective:Learning Objective 1Difficulty :ModerateAACSB:Analytic26) Identify in which of the following scenarios a company could adjust the balance due the vendor byissuing a debit memo.D Page Ref: 385Objective:Learning Objective 1Difficulty :ModerateAACSB:Analytic7 27) What is one of thebestways to improve the overall efficiency and effectiveness of the receipt andstorage of ordered items?BPage Ref: 385 Objective:Learning Objective 1Difficulty :ModerateAACSB:Analytic28) Vendor invoices are approved by the ________, which reports to the ________.A) purchasing department; controllerB) accounts payable department; treasurerC) purchasing department; treasurerD) accounts payable department; controllerAnswer:DPage Ref: 387 Objective:Learning Objective 1Difficulty :ModerateAACSB:Analytic29) The disbursement voucher and supporting documents are sent to the ________ for payment prior tothe due date.A Page Ref: 390Objective:Learning Objective 1Difficulty :EasyAACSB:Analytic30) A(n) ________ system posts an approved invoice to the vendor account and stores it in an openinvoice file until payment is made by check.APage Ref: 387 Objective:Learning Objective 1Difficulty :EasyAACSB:Analytic8 What information does the receiving report provide?A receiving report is a document companies use to record goods and materials received from suppliers during deliveries. Most of the time, receiving reports prepared by shipping or receiving departments are shared with the purchasing department to ensure that the right number and quality of products are received.
Who is responsible for the preparation of the receiving report?Preparation of a receiving report detailing the contents and condition of the goods. 32. This document, prepared by the purchasing department, for use by the receiving department, is copy of the purchase order that eliminates all data about the price and quantity of the items ordered.
Who keeps the original copy of the receiving report?One copy of the receiving report accompanies the goods to the storeroom. The blind copy and packing slip are filed in the receiving department. The other copies of the receiving report are sent to the purchasing department, inventory control, and the AP department.
Is a purchase order a source document?A purchase order is a source document issued by the buyer to the seller. Initially, it requests a product or a service, but it is a binding agreement once the seller accepts the purchase order.
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