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

Blanket POs cover repetitive purchases of similar goods or services over a defined period, reducing administrative overhead.

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

A purchase requisition is the internal document that authorizes purchasing to initiate procurement on a department's behalf.

Question 3

When a purchase order is issued, it legally constitutes:

Accepted Answer

A binding contract upon acceptance by the supplier

Answer

A PO becomes a binding contract when the supplier accepts it, creating mutual obligations for both buyer and seller.

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

Dual authorization above a dollar threshold is a key internal control that reduces fraud and ensures proper oversight.

Question 5

A two-way match in accounts payable verifies:

Accepted Answer

PO and invoice only

Answer

A two-way match compares the purchase order and the supplier invoice to verify quantities and prices align.

(CPP) Certified Purchasing Professional Practice Test