Question 1

Common expenditure processes would include all of the following, except:

Accepted Answer

A) Preparation of a purchase requisition 
B) Receipt of the goods or services 
C) Recording the liability 
D) Payment received on account 
A) Preparation of a purchase requisition 
B) Receipt of the goods or services 
C) Recording the liability 
D) Payment received on account

Question 2

One of the newest technologies related to payables is one where invoices are exchanged and payments are made via the internet.The name given to this process is:

Accepted Answer

A) Random Array of Invoice and Disbursements RAI
D)  
B) Electronic Invoice Payment Procedures EIPP) 
C) Electronic Invoice Presentment and Payment EIPP) 
D) Routing Application Invoice Delivery RAI
D)  
A) Random Array of Invoice and Disbursements RAI
D)  
B) Electronic Invoice Payment Procedures EIPP) 
C) Electronic Invoice Presentment and Payment EIPP) 
D) Routing Application Invoice Delivery RAI
D)

Question 3

This form is prepared to document the need to make a purchase and requests that the specific items and quantities be purchased.

Accepted Answer

A) Purchase order 
B) Purchase requisition 
C) Purchase invoice 
D) Purchase journal 
A) Purchase order 
B) Purchase requisition 
C) Purchase invoice 
D) Purchase journal

Question 4

Within accounts payable, to ensure that each voucher is submitted and paid only once, each invoice approved to be paid should be:

Accepted Answer

A) Supported by a receiving report. 
B) Stamped "paid" by the check signer. 
C) Prenumbered and accounted for. 
D) Approved for authorized purchases. 
A) Supported by a receiving report. 
B) Stamped "paid" by the check signer. 
C) Prenumbered and accounted for. 
D) Approved for authorized purchases.

Question 5

Internal controls related to the purchase returns would include all of the following, except:

Accepted Answer

A) The accounts payable employee who prepares the debit memo should also be responsible for handling the inventory and approving the return. 
B) Special authorization should be required to officially reject and return the items. 
C) Debit memos should be issued on pre-numbered forms in numerical sequence. 
D) Accounts payable records and data files should be restricted to those who are specifically authorized to approve or record the related purchase return. 
A) The accounts payable employee who prepares the debit memo should also be responsible for handling the inventory and approving the return. 
B) Special authorization should be required to officially reject and return the items. 
C) Debit memos should be issued on pre-numbered forms in numerical sequence. 
D) Accounts payable records and data files should be restricted to those who are specifically authorized to approve or record the related purchase return.

Question 6

Which of the following is the correct chronological order of events in the purchase return process?

Accepted Answer

A) 1 = receive return authorization; 2 = prepare debit memo; 3 = receive credit or check; 4 = goods returned 
B) 1 = prepare debit memo; 2 = receive credit or check; 3 = goods returned; 4 = receive return authorization 
C) 1 = receive return authorization; 2 = prepare debit memo; 3 = goods returned; 4 = receive credit or check 
D) 1 = receive return authorization; 2 = goods returned ; 3 = prepare debit memo; 4 = receive credit or check 
A) 1 = receive return authorization; 2 = prepare debit memo; 3 = receive credit or check; 4 = goods returned 
B) 1 = prepare debit memo; 2 = receive credit or check; 3 = goods returned; 4 = receive return authorization 
C) 1 = receive return authorization; 2 = prepare debit memo; 3 = goods returned; 4 = receive credit or check 
D) 1 = receive return authorization; 2 = goods returned ; 3 = prepare debit memo; 4 = receive credit or check

Question 7

The acquisition of materials and supplies and the related cash disbursements is referred to as:

Accepted Answer

A) The Procurement Process 
B) Systems and Control Process 
C) Expenditure and Return Process 
D) Conversion Process 
A) The Procurement Process 
B) Systems and Control Process 
C) Expenditure and Return Process 
D) Conversion Process

Question 8

The careful oversight of cash balances, forecasted cash payments, and forecasted cash receipts to insure that adequate cash balances exist to meet obligations is called:

Accepted Answer

A) Cash disbursements 
B) Cash management 
C) Independent checks 
D) Accounts payable management 
A) Cash disbursements 
B) Cash management 
C) Independent checks 
D) Accounts payable management

Question 9

Each category of processes in the typical purchasing system would include controls and risks.For each of the categories, the goal of the internal controls system is to reduce specific types of business risks.Which of the following is not one of those risks?

Accepted Answer

A) Recording invalid transactions. 
B) Recording transactions at the wrong amounts. 
C) Omitting actual transactions from the accounting records. 
D) Transactions properly accumulated or transferred to the correct accounting records. 
A) Recording invalid transactions. 
B) Recording transactions at the wrong amounts. 
C) Omitting actual transactions from the accounting records. 
D) Transactions properly accumulated or transferred to the correct accounting records.

Question 10

Cash should be periodically verified by comparing the cash balance with the bank statement.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would be referred to as a common carrier?

Accepted Answer

A) Taxi-cab 
B) Trucking company 
C) City bus 
D) Fire department vehicle 
A) Taxi-cab 
B) Trucking company 
C) City bus 
D) Fire department vehicle

Question 12

The internal control process that requires physical controls in the warehouse and shipping areas with access to inventory helps to minimize the risk of:

Accepted Answer

A) Incorrect amounts 
B) Stolen goods 
C) Omitted returns 
D) Duplicate purchase returns 
A) Incorrect amounts 
B) Stolen goods 
C) Omitted returns 
D) Duplicate purchase returns

Question 13

When a company implements an evaluated receipt settlement results in the increase in the strength of the internal controls.

Accepted Answer

A) True 
 B)False

Question 14

The accounting department is responsible for implementing internal controls over each business process.

Accepted Answer

A) True 
 B)False

Question 15

When a payment has been made, the cash disbursements clerk will clearly mark the invoice with information pertaining to the date and the check number used to satisfy the obligation.This process is called:

Accepted Answer

A) Marking the invoice 
B) Retiring the invoice 
C) Cancelling the invoice 
D) Destroying the invoice 
A) Marking the invoice 
B) Retiring the invoice 
C) Cancelling the invoice 
D) Destroying the invoice

Question 16

This document, prepared and maintained by the receiving department, is a sequential listing of all receipts.

Accepted Answer

A) Receiving report 
B) Packing slip 
C) Bill of lading 
D) Receiving log 
A) Receiving report 
B) Packing slip 
C) Bill of lading 
D) Receiving log

Question 17

When an automated matching system is used, all of the relevant files must be online or in databases).The system can then access the online purchase order and receiving files and check the match of items, quantities, and prices.

Accepted Answer

A) True 
 B)False

Question 18

When the company is a vendor, goods flow into the company and cash is paid out.

Accepted Answer

A) True 
 B)False

Question 19

For a number of different reasons, a company may find it necessary to reject goods received which will start the purchase returns process.

Accepted Answer

A) True 
 B)False

Question 20

The internal control process that requires purchase records to be matched and verified for item descriptions, quantities, dates, authorized prices, and mathematical accuracy, will help to minimize the risk of:

Accepted Answer

A) Stolen goods 
B) Omitted transactions 
C) Invalid purchases 
D) Incorrect accumulation 
A) Stolen goods 
B) Omitted transactions 
C) Invalid purchases 
D) Incorrect accumulation

Common expenditure processes would include all of the following, except:

One of the newest technologies related to payables is one where invoices are exchanged and payments are made via the internet.The name given to this process is:

This form is prepared to document the need to make a purchase and requests that the specific items and quantities be purchased.

Within accounts payable, to ensure that each voucher is submitted and paid only once, each invoice approved to be paid should be:

Internal controls related to the purchase returns would include all of the following, except:

Which of the following is the correct chronological order of events in the purchase return process?

The acquisition of materials and supplies and the related cash disbursements is referred to as:

The careful oversight of cash balances, forecasted cash payments, and forecasted cash receipts to insure that adequate cash balances exist to meet obligations is called:

Each category of processes in the typical purchasing system would include controls and risks.For each of the categories, the goal of the internal controls system is to reduce specific types of business risks.Which of the following is not one of those risks?

Cash should be periodically verified by comparing the cash balance with the bank statement.

Which of the following would be referred to as a common carrier?

The internal control process that requires physical controls in the warehouse and shipping areas with access to inventory helps to minimize the risk of:

When a company implements an evaluated receipt settlement results in the increase in the strength of the internal controls.

The accounting department is responsible for implementing internal controls over each business process.

When a payment has been made, the cash disbursements clerk will clearly mark the invoice with information pertaining to the date and the check number used to satisfy the obligation.This process is called:

This document, prepared and maintained by the receiving department, is a sequential listing of all receipts.

When an automated matching system is used, all of the relevant files must be online or in databases).The system can then access the online purchase order and receiving files and check the match of items, quantities, and prices.

When the company is a vendor, goods flow into the company and cash is paid out.

For a number of different reasons, a company may find it necessary to reject goods received which will start the purchase returns process.

The internal control process that requires purchase records to be matched and verified for item descriptions, quantities, dates, authorized prices, and mathematical accuracy, will help to minimize the risk of:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls Payroll and Fixed Assets

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters

Exam 9: Expenditures Processes and Controls - Purchases

Common expenditure processes would include all of the following, except:

One of the newest technologies related to payables is one where invoices are exchanged and payments are made via the internet.The name given to this process is:

This form is prepared to document the need to make a purchase and requests that the specific items and quantities be purchased.

Within accounts payable, to ensure that each voucher is submitted and paid only once, each invoice approved to be paid should be:

Internal controls related to the purchase returns would include all of the following, except:

Which of the following is the correct chronological order of events in the purchase return process?

The acquisition of materials and supplies and the related cash disbursements is referred to as:

The careful oversight of cash balances, forecasted cash payments, and forecasted cash receipts to insure that adequate cash balances exist to meet obligations is called:

Each category of processes in the typical purchasing system would include controls and risks.For each of the categories, the goal of the internal controls system is to reduce specific types of business risks.Which of the following is not one of those risks?

Cash should be periodically verified by comparing the cash balance with the bank statement.

Which of the following would be referred to as a common carrier?

The internal control process that requires physical controls in the warehouse and shipping areas with access to inventory helps to minimize the risk of:

When a company implements an evaluated receipt settlement results in the increase in the strength of the internal controls.

The accounting department is responsible for implementing internal controls over each business process.

When a payment has been made, the cash disbursements clerk will clearly mark the invoice with information pertaining to the date and the check number used to satisfy the obligation.This process is called:

This document, prepared and maintained by the receiving department, is a sequential listing of all receipts.

When an automated matching system is used, all of the relevant files must be online or in databases).The system can then access the online purchase order and receiving files and check the match of items, quantities, and prices.

When the company is a vendor, goods flow into the company and cash is paid out.

For a number of different reasons, a company may find it necessary to reject goods received which will start the purchase returns process.

The internal control process that requires purchase records to be matched and verified for item descriptions, quantities, dates, authorized prices, and mathematical accuracy, will help to minimize the risk of:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls Payroll and Fixed Assets

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters