What are the two primary workflows for making purchases in QuickBooks?

• A. Lease management and procurement
• B. Invoicing customers and receiving payments
• C. Tracking accounts payable (enter bills, pay bills) and Open drawer method (write checks)
• D. Inventory valuation and cost accounting

Answer: (C)

The main idea is to understand how QuickBooks records purchases through the two primary entry paths: entering bills and paying them later, or paying at the time of purchase by writing a check. When you receive goods or services on credit, you enter a bill, which creates a liability in Accounts Payable and records the expense or inventory cost. Later, you can pay that bill, which reduces cash and clears the liability. On the other hand, if you pay for something immediately, you can use the Write Checks (open drawer) workflow to record the cash outlay directly, which may not involve creating a separate accounts payable entry. These two paths cover the standard ways purchases are captured in QuickBooks.

The other options don’t describe how purchases are processed in QuickBooks: lease management and procurement is more about vendor and asset management; invoicing customers and receiving payments relates to sales, not purchases; and inventory valuation and cost accounting are broader topics about tracking costs and stock, not the fundamental entry method for recording a purchase.