Question 1

Which of the following statements is not correct?

Accepted Answer

A)  the voucher system is used to improve control over cash disbursements 
B)  the sum of the paid vouchers represents the voucher payable liability of the firm 
C)  the voucher system permits the firm to consolidate payments of several invoices on one voucher 
D)  many firms replace accounts payable with a voucher payable system 
A)  the voucher system is used to improve control over cash disbursements 
B)  the sum of the paid vouchers represents the voucher payable liability of the firm 
C)  the voucher system permits the firm to consolidate payments of several invoices on one voucher 
D)  many firms replace accounts payable with a voucher payable system B

Question 2

When searching for unrecorded liabilities at the end of an accounting period,the accountant would search all of the files except

Accepted Answer

A)  the purchase requisition file 
B)  the cash receipts file 
C)  the purchase order file 
D)  the receiving report file 
A)  the purchase requisition file 
B)  the cash receipts file 
C)  the purchase order file 
D)  the receiving report file B

Question 3

The document which will close the open purchase requisition file is the

Accepted Answer

A)  purchase order 
B)  vendor invoice 
C)  receiving report 
D)  none of the above 
A)  purchase order 
B)  vendor invoice 
C)  receiving report 
D)  none of the above C

Question 4

The purpose of the purchase requisition is to

Accepted Answer

A)  order goods from vendors 
B)  record receipt of goods from vendors 
C)  authorize the purchasing department to order goods 
D)  bill for goods delivered 
A)  order goods from vendors 
B)  record receipt of goods from vendors 
C)  authorize the purchasing department to order goods 
D)  bill for goods delivered

Question 5

Why should the copy of a purchase order,which is sent to receiving,be a "blind" copy?

Accepted Answer

to force workers in

Question 6

What are the key segregation of duties issues in purchasing and cash disbursements?

Accepted Answer

The key segregation of duties issue in p

Question 7

Copies of a purchase order are sent to all of the following except

Accepted Answer

A)  inventory control 
B)  receiving 
C)  general ledger 
D)  accounts payable 
A)  inventory control 
B)  receiving 
C)  general ledger 
D)  accounts payable

Question 8

List specific jobs that should be segregated in the cash disbursements system.

Accepted Answer

general ledger from accounts p

Question 9

The documents in a voucher packet include all of the following except

Accepted Answer

A)  a check 
B)  a purchase order 
C)  a receiving report 
D)  a supplier's invoice 
A)  a check 
B)  a purchase order 
C)  a receiving report 
D)  a supplier's invoice

Question 10

A supplier invoice

Accepted Answer

A)  is included with the goods 
B)  shows what was ordered even if all was not shipped 
C)  is sent by vendor to accounts payable 
D)  none of the above 
A)  is included with the goods 
B)  shows what was ordered even if all was not shipped 
C)  is sent by vendor to accounts payable 
D)  none of the above

Question 11

The inventory procurement process begins with the purchasing clerk preparing a purchase order.

Accepted Answer

A) True 
 B)False

Question 12

One reason for authorizing purchases is to enable efficient inventory management.

Accepted Answer

A) True 
 B)False

Question 13

The use of inventory reorder points suggests the need to obtain specific authorization.

Accepted Answer

A) True 
 B)False

Question 14

Outline the key steps taken in the purchasing system?

Accepted Answer

Inventory control monitors inventory and

Question 15

What is the purpose of a receiving report?

Accepted Answer

Upon completion of the physical count an

Question 16

The financial value of a purchase is determined by reviewing the

Accepted Answer

A)  packing slip 
B)  purchase requisition 
C)  receiving report 
D)  supplier's invoice 
A)  packing slip 
B)  purchase requisition 
C)  receiving report 
D)  supplier's invoice

Question 17

What are the steps taken in the cash disbursement system?

Accepted Answer

Accounts payable reviews the documents r

Question 18

Goods received are inspected and counted to

Accepted Answer

A)  determine that the goods are in good condition 
B)  determine the quantity of goods received 
C)  preclude payment for goods not received or received in poor condition 
D)  all of the above 
A)  determine that the goods are in good condition 
B)  determine the quantity of goods received 
C)  preclude payment for goods not received or received in poor condition 
D)  all of the above

Question 19

Which internally generated document should be compared to the supplier's invoice to verify the price of an item?

Accepted Answer

The answer of Which internally generated document should be compared...

Question 20

All of the following departments have a copy of the purchase order except

Accepted Answer

A)  the purchasing department 
B)  the receiving department 
C)  accounts payable 
D)  general ledger 
A)  the purchasing department 
B)  the receiving department 
C)  accounts payable 
D)  general ledger

Which of the following statements is not correct?

When searching for unrecorded liabilities at the end of an accounting period,the accountant would search all of the files except

The document which will close the open purchase requisition file is the

The purpose of the purchase requisition is to

Why should the copy of a purchase order,which is sent to receiving,be a "blind" copy?

What are the key segregation of duties issues in purchasing and cash disbursements?

Copies of a purchase order are sent to all of the following except

List specific jobs that should be segregated in the cash disbursements system.

The documents in a voucher packet include all of the following except

A supplier invoice

The inventory procurement process begins with the purchasing clerk preparing a purchase order.

One reason for authorizing purchases is to enable efficient inventory management.

The use of inventory reorder points suggests the need to obtain specific authorization.

Outline the key steps taken in the purchasing system?

What is the purpose of a receiving report?

The financial value of a purchase is determined by reviewing the

What are the steps taken in the cash disbursement system?

Goods received are inspected and counted to

Which internally generated document should be compared to the supplier's invoice to verify the price of an item?

All of the following departments have a copy of the purchase order except

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters

Exam 5: The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

Which of the following statements is not correct?

When searching for unrecorded liabilities at the end of an accounting period,the accountant would search all of the files except

The document which will close the open purchase requisition file is the

The purpose of the purchase requisition is to

Why should the copy of a purchase order,which is sent to receiving,be a "blind" copy?

What are the key segregation of duties issues in purchasing and cash disbursements?

Copies of a purchase order are sent to all of the following except

List specific jobs that should be segregated in the cash disbursements system.

The documents in a voucher packet include all of the following except

A supplier invoice

The inventory procurement process begins with the purchasing clerk preparing a purchase order.

One reason for authorizing purchases is to enable efficient inventory management.

The use of inventory reorder points suggests the need to obtain specific authorization.

Outline the key steps taken in the purchasing system?

What is the purpose of a receiving report?

The financial value of a purchase is determined by reviewing the

What are the steps taken in the cash disbursement system?

Goods received are inspected and counted to

Which internally generated document should be compared to the supplier's invoice to verify the price of an item?

All of the following departments have a copy of the purchase order except

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters