ACCA Applied Knowledge · Business and Technology · The relationship between accounting and other business functions
Which of the following is a way in which the purchasing function supports the accounting function?
Purchasing supports accounting by supplying accurate order and goods-received records, which let accountants record inventory, payables and accruals correctly. Tax rates are set by governments and selling prices are decided by management or marketing, not by purchasing.
- AProviding accurate order and receipt records so liabilities and inventory can be correctly recordedCorrect
- BDeciding the rate of corporate income tax payable
- CSetting the selling prices of finished goods
Explanation
Purchasing documents such as orders and goods received notes allow accounting to record payables, inventory and accruals correctly. Tax rates are set by government, and selling prices are generally a marketing or management decision.
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