1. When does a purchase order become binding?

A. when the company expresses intent to send a purchase order

B. when the company actually sends the purchase order

C. when the vendor accepts the purchase order

D. when the company receives an invoice

2. Small business must hire professional finance managers to manage their income and expenses.

A. True

B. False

3. What do smart companies do to account for depreciation?

A. lower their prices

B. locate cheaper vendors

C. put money in savings

D. purchase an insurance policy

4. Business must report their financial statements to the IRS.

A. True

B. False

5. Vendors submit invoices prior to receiving purchase order from companies.

A. True

B. False

When does a purchase order become binding? when the vendor accepts the purchase order When a contract is made and the vendor accepts the purchase order the purchase is binding. The binding contract has a detailed outline of what is is expected to be received.

Small business must hire professional finance managers to manage their income and expenses.

They don't have to, but it is highly recommended for them to hirer a finance manager. Because they are highly targeted for "mess ups" a finance manager can keep transactions current and accurate.

Business must report their financial statements to the IRS. True. The businesses pay taxes to the government and also this allows their employees to have statements to file and pay taxes as well.

Vendors submit invoices prior to receiving purchase order from companies.

Companies will submit the items they want to a vendor, and then a vendor will gather the items total and invoice the company. Without knowing the items that are needed, they will not be able to go invoice for the items.