Practice prompt · Q:transactions-to-statements/event-record-001

Purchase order, delivery, and accounting record

Formative check on separating an economic event from its element and account representations.

Updated Aug 6, 2026 Review due Nov 6, 2026

Practice

Check your answer

Choose a response, then check the answer and explanation.

A company places a purchase order for office supplies. Two days later the vendor delivers the supplies on credit, and the company accepts them. Under the stated terms, the order alone created no recognized asset or liability. Which statement correctly distinguishes the event, elements, and accounts?

Choose the best answer. A The purchase order is the asset, and Supplies is the financial statement element. B Delivery creates the stated asset and obligation; Supplies and Accounts Payable are accounts that preserve detail about the asset and liability elements. C No accounting event occurs until cash is paid because only cash movements can be recorded. D Accounts Payable is the economic event, and delivery is the account used to record it.

Your answer stays on this page. It is not sent or saved.

Show explanationHide explanation

Answer: B

Choice B is correct. Delivery is the economic event that creates the stated right to supplies and obligation to pay. Asset and liability are the broad elements; Supplies and Accounts Payable are the accounts that retain detail.