CPP Purchase Requisition & Order Processing 2

Question 1

A blanket purchase order is BEST used when:

Accepted Answer

Repetitive purchases of similar items occur over a period

Answer

A one-time large purchase is needed

Answer

Emergency purchases must be expedited immediately

Answer

Sole-source items require special authorization

Question 2

Which document formally authorizes the purchasing department to procure goods or services on behalf of an internal department?

Accepted Answer

Purchase requisition

Answer

Invoice

Answer

Bill of lading

Answer

Receiving report

Question 3

When a purchase order is issued, it legally constitutes:

Accepted Answer

A binding contract upon acceptance by the supplier

Answer

A non-binding request for quotation

Answer

An internal budget authorization only

Answer

A delivery receipt confirming goods received

Question 4

Which of the following is a key control in the purchase requisition approval process?

Accepted Answer

Requiring dual authorization above a defined dollar threshold

Answer

Allowing any employee to approve their own requisitions

Answer

Bypassing approvals for orders under $10,000 automatically

Answer

Submitting requisitions directly to suppliers for faster delivery

Question 5

A two-way match in accounts payable verifies:

Accepted Answer

PO and invoice only

Answer

PO, receiving report, and invoice

Answer

Invoice and receiving report only

Answer

Requisition and PO only

Question 6

What is the primary purpose of an open-to-buy (OTB) system in purchasing?

Accepted Answer

To control purchasing authority within budget limits

Answer

To track outstanding supplier invoices

Answer

To automate the approval of purchase requisitions

Answer

To manage supplier performance scorecards

Question 7

Which situation would MOST likely require a change order to an existing purchase order?

Accepted Answer

The buyer needs to modify the quantity after PO issuance

Answer

The supplier delivers on time as specified

Answer

The invoice matches the PO exactly

Answer

The goods pass inspection at receiving