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ACCA Applied Knowledge · Financial Accounting · Double-entry bookkeeping principles including the maintenance of accounting records

Which is the main purpose of a goods received note when a business processes a supplier's invoice?

A goods received note confirms that goods were actually delivered. It is matched with the purchase order and supplier invoice before the invoice is approved for payment, which helps prevent paying for goods never received.

  1. ATo confirm goods were actually delivered before the invoice is approved for paymentCorrect
  2. BTo record the price agreed with the supplier before ordering
  3. CTo show the amount of cash paid to the supplier
  4. DTo notify the supplier of goods returned

Explanation

A goods received note is matched with the purchase order and the supplier invoice to confirm that goods ordered were received before payment is approved. It does not record prices at ordering, which is the purchase order's role. It also does not evidence payment or returns.

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