BUS 426 Chapter Notes - Chapter 18: Accounts Payable, Computer File, Trial Balance

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 426
• Professor: Michael Favere- Marchesi

Document Summary

The nature of the acquisition and payment cycle. Acquisition and payment cycle: the transaction cycle that includes the acquisition of and payment for goods and services outside the organization. Purchase requisition: a written request for goods and services by an authorized employee. Purchase order: a document prepared by the purchasing department indicating the description, quantity, and related information for goods and services that the company intends to purchase. Vendor master file: sums acquisitions, cash disbursements and acquisition returns and allowances for each vendor. Vendor"s invoice: a document that specifies the details of an acquisition transaction and amount of money owed to the vendor for an acquisition. Debit memo: a document indicating a reduction in the amount owed to a vendor because of returned goods or an allowance granted. Vendor master file: a computer file for maintaining a record for each vendor of individual acquisitions, cash disbursements, and acquisition returns and allowances, and vendor balances.