Question 1

List specific jobs that should be segregated in the purchases processing system.

Accepted Answer

inventory control fr

Question 2

What is the purpose of the purchase requisition?

Accepted Answer

When inventories drop to a predetermined

Question 3

Describe an internal control procedure that would prevent payment of a invoice for goods that were never delivered.

Accepted Answer

Accounts payable sho

Question 4

In a merchandising firm,authorization for the payment of inventory is the responsibility of

Accepted Answer

A)  inventory control 
B)  purchasing 
C)  accounts payable 
D)  cash disbursements 
A)  inventory control 
B)  purchasing 
C)  accounts payable 
D)  cash disbursements

Question 5

What is a vouchers payable system and why is it used?

Accepted Answer

Many firms use a vouchers payable system

Question 6

The warehouse is responsible for updating the inventory subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 7

What is(are)the purpose(s)of maintaining a valid vendor file?

Accepted Answer

Inventories should only be acquired from

Question 8

The cash disbursement clerk performs all of the following tasks except

Accepted Answer

A)  reviews the supporting documents for completeness and accuracy 
B)  prepares checks 
C)  signs checks 
D)  marks the supporting documents paid 
A)  reviews the supporting documents for completeness and accuracy 
B)  prepares checks 
C)  signs checks 
D)  marks the supporting documents paid

Question 9

What is a blind copy of a purchase order and what is its purpose?

Accepted Answer

A blind copy of the PO contains no quant

Question 10

Before authorizing payment for goods purchased,accounts payable reconciles three documents related to the purchase.Name them and explain what each indicates.What control area of SAS 78 is being addressed?

Accepted Answer

The three documents are:
the purchase or

Question 11

A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.

Accepted Answer

A) True 
 B)False

Question 12

The major risk exposures associated with the receiving department include all of the following except

Accepted Answer

A)  goods are accepted without a physical count 
B)  there is no inspection for goods damaged in shipment 
C)  inventories are not secured on the receiving dock 
D)  the audit trail is destroyed 
A)  goods are accepted without a physical count 
B)  there is no inspection for goods damaged in shipment 
C)  inventories are not secured on the receiving dock 
D)  the audit trail is destroyed

Question 13

If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

Accepted Answer

A) True 
 B)False

Question 14

In a computerized system that uses an economic order quantity (EOQ)model and the perpetual inventory method,who determines when to reorder inventory?

Accepted Answer

A)  the inventory control clerk 
B)  the purchasing department 
C)  the vendor 
D)  the computer system 
A)  the inventory control clerk 
B)  the purchasing department 
C)  the vendor 
D)  the computer system

Question 15

What type of error or fraud might happen if the accounts payable ledger is not periodically reconciled to the control account in the general ledger?

Accepted Answer

errors in A/P proces

Question 16

What is the purpose of the suppliers invoice?

Accepted Answer

The suppliers invoice triggers the three

Question 17

Firms that wish to improve control over cash disbursements use a voucher system.

Accepted Answer

A) True 
 B)False

Question 18

When goods are received,the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.

Accepted Answer

A) True 
 B)False

Question 19

Why do companies devote resources to a purchasing department? Could not individual departments make their own purchases more efficiently?

Accepted Answer

The purchasing function is extremely imp

Question 20

If a company uses a standard cost system,inventory records can be updated from the

Accepted Answer

A)  vendor invoice 
B)  purchase order 
C)  receiving report 
D)  purchase requisition 
A)  vendor invoice 
B)  purchase order 
C)  receiving report 
D)  purchase requisition

List specific jobs that should be segregated in the purchases processing system.

What is the purpose of the purchase requisition?

Describe an internal control procedure that would prevent payment of a invoice for goods that were never delivered.

In a merchandising firm,authorization for the payment of inventory is the responsibility of

What is a vouchers payable system and why is it used?

The warehouse is responsible for updating the inventory subsidiary ledger.

What is(are)the purpose(s)of maintaining a valid vendor file?

The cash disbursement clerk performs all of the following tasks except

What is a blind copy of a purchase order and what is its purpose?

Before authorizing payment for goods purchased,accounts payable reconciles three documents related to the purchase.Name them and explain what each indicates.What control area of SAS 78 is being addressed?

A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.

The major risk exposures associated with the receiving department include all of the following except

If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

In a computerized system that uses an economic order quantity (EOQ)model and the perpetual inventory method,who determines when to reorder inventory?

What type of error or fraud might happen if the accounts payable ledger is not periodically reconciled to the control account in the general ledger?

What is the purpose of the suppliers invoice?

Firms that wish to improve control over cash disbursements use a voucher system.

When goods are received,the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.

Why do companies devote resources to a purchasing department? Could not individual departments make their own purchases more efficiently?

If a company uses a standard cost system,inventory records can be updated from the

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

List specific jobs that should be segregated in the purchases processing system.

What is the purpose of the purchase requisition?

Describe an internal control procedure that would prevent payment of a invoice for goods that were never delivered.

In a merchandising firm,authorization for the payment of inventory is the responsibility of

What is a vouchers payable system and why is it used?

The warehouse is responsible for updating the inventory subsidiary ledger.

What is(are)the purpose(s)of maintaining a valid vendor file?

The cash disbursement clerk performs all of the following tasks except

What is a blind copy of a purchase order and what is its purpose?

Before authorizing payment for goods purchased,accounts payable reconciles three documents related to the purchase.Name them and explain what each indicates.What control area of SAS 78 is being addressed?

A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.

The major risk exposures associated with the receiving department include all of the following except

If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

In a computerized system that uses an economic order quantity (EOQ)model and the perpetual inventory method,who determines when to reorder inventory?

What type of error or fraud might happen if the accounts payable ledger is not periodically reconciled to the control account in the general ledger?

What is the purpose of the suppliers invoice?

Firms that wish to improve control over cash disbursements use a voucher system.

When goods are received,the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.

Why do companies devote resources to a purchasing department? Could not individual departments make their own purchases more efficiently?

If a company uses a standard cost system,inventory records can be updated from the

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