In both SABRS and the Procurement Cycle, which action corresponds to the Expense step?

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Multiple Choice

In both SABRS and the Procurement Cycle, which action corresponds to the Expense step?

Explanation:
The Expense step is when the unit actually receives and takes possession of the goods or services, allowing the cost to be recognized in the financial records. In SABRS and the Procurement Cycle, funds may be obligated and an order placed earlier, but the expense is recorded only after receipt and acceptance, when the unit can use the item or benefit from the service. Payment happens later and simply settles the outstanding liability; it does not by itself create the expense. So, recognizing the cost at the moment the goods or services are received best fits the Expense step.

The Expense step is when the unit actually receives and takes possession of the goods or services, allowing the cost to be recognized in the financial records. In SABRS and the Procurement Cycle, funds may be obligated and an order placed earlier, but the expense is recorded only after receipt and acceptance, when the unit can use the item or benefit from the service. Payment happens later and simply settles the outstanding liability; it does not by itself create the expense. So, recognizing the cost at the moment the goods or services are received best fits the Expense step.

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