Question 1

The receiving report is prepared by the vendor to provide evidence that the purchase order was received.

Accepted Answer

A) True 
 B)False

Question 2

To maintain a good credit rating and to optimize cash management,cash disbursements should arrive at the vendor's place of business

Accepted Answer

A)  as soon as possible 
B)  on the due date 
C)  on the discount date 
D)  by the end of the month 
A)  as soon as possible 
B)  on the due date 
C)  on the discount date 
D)  by the end of the month

Question 3

An automated cash disbursements system can yield better cash management since payments are made on time.

Accepted Answer

A) True 
 B)False

Question 4

What is the purpose of the purchase order?

Accepted Answer

The purchasing function receives the pur

Question 5

Explain why a three way match may not be required for transactions covered by a trading partner agreement.

Accepted Answer

Under a trading partner agreement the pa

Question 6

When a copy of the receiving report arrives in the purchasing department,it is used to

Accepted Answer

A)  adjust perpetual inventory records 
B)  record the physical transfer of inventory from receiving to the warehouse 
C)  analyze the receiving department's process 
D)  recognize the purchase order as closed 
A)  adjust perpetual inventory records 
B)  record the physical transfer of inventory from receiving to the warehouse 
C)  analyze the receiving department's process 
D)  recognize the purchase order as closed

Question 7

The receiving report is used to

Accepted Answer

A)  accompany physical inventories to the storeroom or warehouse 
B)  advise the purchasing department of the dollar value of the goods delivered 
C)  advise general ledger of the accounting entry to be made 
D)  advise the vendor that the goods arrived safely 
A)  accompany physical inventories to the storeroom or warehouse 
B)  advise the purchasing department of the dollar value of the goods delivered 
C)  advise general ledger of the accounting entry to be made 
D)  advise the vendor that the goods arrived safely

Question 8

The purchase order

Accepted Answer

A)  is the source document to make an entry into the accounting records 
B)  indicates item description, quantity, and price 
C)  is prepared by the inventory control department 
D)  is approved by the end-user department 
A)  is the source document to make an entry into the accounting records 
B)  indicates item description, quantity, and price 
C)  is prepared by the inventory control department 
D)  is approved by the end-user department

Question 9

Where is access control exercised in the purchasing/cash disbursement functions?

Accepted Answer

physical control of inventory

Question 10

The purpose of the receiving report 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 11

What is the principle objective of the cash disbursement system?

Accepted Answer

The principal objective of this system i

Question 12

The purpose of the purchase order 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)  approve payment for goods received 
A)  order goods from vendors 
B)  record receipt of goods from vendors 
C)  authorize the purchasing department to order goods 
D)  approve payment for goods received

Question 13

Authorization of purchases in a merchandising firm occurs in the inventory control department.

Accepted Answer

A) True 
 B)False

Question 14

In a merchandising firm,authorization for the purchase 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 15

How does the procedure for determining inventory requirements differ between a basic batch processing system and batch processing with real-time data input of sales and receipts of inventory? What about for the procedures used by the receiving department?

Accepted Answer

A system which employs real-time data en

Question 16

In a real-time processing system with a high number of transactions,the best and most practical control over cash disbursements is to have

Accepted Answer

A)  all checks manually signed by the treasurer 
B)  all checks signed by check-signing equipment 
C)  checks over a certain dollar amount manually signed by the treasurer 
D)  checks over a certain dollar amount manually signed by the cash disbursements clerk 
A)  all checks manually signed by the treasurer 
B)  all checks signed by check-signing equipment 
C)  checks over a certain dollar amount manually signed by the treasurer 
D)  checks over a certain dollar amount manually signed by the cash disbursements clerk

Question 17

What internal accounting control(s)would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent,he claims the goods were never received.

Accepted Answer

receiving records it

Question 18

What function or department typically initiates a purchase in a merchandising business?

Accepted Answer

Inventory control determines t

Question 19

The open purchase order file in the purchasing department is used to determine

Accepted Answer

A)  the quality of items a vendor ships 
B)  the best vendor for a specific item 
C)  the orders that have not been received 
D)  the quantity of items received 
A)  the quality of items a vendor ships 
B)  the best vendor for a specific item 
C)  the orders that have not been received 
D)  the quantity of items received

Question 20

The receiving report

Accepted Answer

A)  is used to update the actual cost inventory ledger 
B)  accompanies the goods to the storeroom 
C)  is sent to general ledger 
D)  is returned to the vendor to acknowledge receipt of the goods 
A)  is used to update the actual cost inventory ledger 
B)  accompanies the goods to the storeroom 
C)  is sent to general ledger 
D)  is returned to the vendor to acknowledge receipt of the goods

The receiving report is prepared by the vendor to provide evidence that the purchase order was received.

To maintain a good credit rating and to optimize cash management,cash disbursements should arrive at the vendor's place of business

An automated cash disbursements system can yield better cash management since payments are made on time.

What is the purpose of the purchase order?

Explain why a three way match may not be required for transactions covered by a trading partner agreement.

When a copy of the receiving report arrives in the purchasing department,it is used to

The receiving report is used to

The purchase order

Where is access control exercised in the purchasing/cash disbursement functions?

The purpose of the receiving report is to

What is the principle objective of the cash disbursement system?

The purpose of the purchase order is to

Authorization of purchases in a merchandising firm occurs in the inventory control department.

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

How does the procedure for determining inventory requirements differ between a basic batch processing system and batch processing with real-time data input of sales and receipts of inventory? What about for the procedures used by the receiving department?

In a real-time processing system with a high number of transactions,the best and most practical control over cash disbursements is to have

What internal accounting control(s)would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent,he claims the goods were never received.

What function or department typically initiates a purchase in a merchandising business?

The open purchase order file in the purchasing department is used to determine

The receiving report

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

The receiving report is prepared by the vendor to provide evidence that the purchase order was received.

To maintain a good credit rating and to optimize cash management,cash disbursements should arrive at the vendor's place of business

An automated cash disbursements system can yield better cash management since payments are made on time.

What is the purpose of the purchase order?

Explain why a three way match may not be required for transactions covered by a trading partner agreement.

When a copy of the receiving report arrives in the purchasing department,it is used to

The receiving report is used to

The purchase order

Where is access control exercised in the purchasing/cash disbursement functions?

The purpose of the receiving report is to

What is the principle objective of the cash disbursement system?

The purpose of the purchase order is to

Authorization of purchases in a merchandising firm occurs in the inventory control department.

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

How does the procedure for determining inventory requirements differ between a basic batch processing system and batch processing with real-time data input of sales and receipts of inventory? What about for the procedures used by the receiving department?

In a real-time processing system with a high number of transactions,the best and most practical control over cash disbursements is to have

What internal accounting control(s)would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent,he claims the goods were never received.

What function or department typically initiates a purchase in a merchandising business?

The open purchase order file in the purchasing department is used to determine

The receiving report

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