Question One

The most common item categories are standard, consignment, subcontracting, third-party, and stock transfer. Explain how each of these item categories impactson procurement processwhen a company purchases materials or services?

Question Two

Explain how the procurement process is integrated with other processes within anorganization.

Question Three

Differentiate between the general ledger, subsidiary ledgers and reconciliation accounts. Explain how they are related. Support your answer with examples.

Question Four

Let's consider this scenario:

ABC Company would like to sell bicycles to two customers on credit. The sales are as follow: $2000 from Customer 1 and $1000 from Customer 2.

Prepare the T-accounts to record the sales for each customer in the accounts receivable subledger accounts and illustrate how it will appear in the general ledger accounts.