Invoice: Which statement describes the invoice?

• A. Vendor issues the invoice to the lessor seeking payment for the equipment
• B. Indicates the lessee as the shipped to party
• C. Describes terms, if any, of the purchase
• D. Demonstrates the passage of title from vendor to the lessor

Answer: (A)

An invoice is a bill that requests payment for goods or equipment that has been supplied. In a lease arrangement where the vendor sells equipment to the lessor for lease to the lessee, the vendor issues that bill to the lessor so payment can be made for the equipment. This directly reflects the invoice’s primary purpose: to demand payment for what was delivered.

While an invoice may show terms of payment or shipping details, those elements are not what define the document’s main function. Similarly, the transfer of title is typically documented by a different instrument, such as a bill of sale or another title-transfer document, not by the invoice itself.