Question 1

Which of the following is NOT a concern of the expenditure cycle?

Accepted Answer

A) Favourable settlement terms are negotiated with the supplier. 
B) Payments match supplier invoice,purchase order and delivery docket. 
C) Payments are made by authorised employees 
D) There are sufficient goods in the finished goods inventory to fulfil the customer's order. 
A) Favourable settlement terms are negotiated with the supplier. 
B) Payments match supplier invoice,purchase order and delivery docket. 
C) Payments are made by authorised employees 
D) There are sufficient goods in the finished goods inventory to fulfil the customer's order. D

Question 2

Which of the following is NOT a strategy level decision to be made in the expenditure cycle?

Accepted Answer

A) Whether the organisation should consolidate purchases across units to obtain optimal prices. 
B) How IT can be used to improve both the efficiency and the accuracy of the inbound logistics function. 
C) Identifying where inventories and supplies should be held. 
D) Determining the optimal level of inventory and supplies to carry. 
A) Whether the organisation should consolidate purchases across units to obtain optimal prices. 
B) How IT can be used to improve both the efficiency and the accuracy of the inbound logistics function. 
C) Identifying where inventories and supplies should be held. 
D) Determining the optimal level of inventory and supplies to carry. D

Question 3

Which of the following is a vital indicator when deciding whether a payment should be made to a supplier?

Accepted Answer

A) The manager's authorisation and agreement. 
B) The receipt of a receiving report from the warehouse department. 
C) Goods are received in sufficient quantity and good quality. 
D) The supplier has provided the company with an invoice. 
A) The manager's authorisation and agreement. 
B) The receipt of a receiving report from the warehouse department. 
C) Goods are received in sufficient quantity and good quality. 
D) The supplier has provided the company with an invoice. C

Question 4

Accumulation of purchase requests should be done when:

Accepted Answer

A) There is a potential to achieve a better price outcome by buying in bulk. 
B) Transaction costs can be lower by a smaller number of larger orders. 
C) Time is not critical for the items being purchased. 
D) All of the options are correct. 
A) There is a potential to achieve a better price outcome by buying in bulk. 
B) Transaction costs can be lower by a smaller number of larger orders. 
C) Time is not critical for the items being purchased. 
D) All of the options are correct.

Question 5

The expenditure cycle commences when:

Accepted Answer

A) ~ A section of the organisation signals a need for goods or services to be provided 
B) The goods or services that are acquired by a section of the organisation have been paid for 
C) Purchase orders are appropriately authorised 
D) Delivered goods are received 
A) ~ A section of the organisation signals a need for goods or services to be provided 
B) The goods or services that are acquired by a section of the organisation have been paid for 
C) Purchase orders are appropriately authorised 
D) Delivered goods are received

Question 6

Give at least five KPI to measure the performance of the objective "To ensure payments made to suppliers are both timely and accurate".

Accepted Answer

$ cash losses
$ or # unauthori

Question 7

An inventory management strategy where the goal is to time the ordering of goods so they arrive just before when they are to be used,so as to reduce inventory holding costs is referred to as:

Accepted Answer

A) BTI 
B) JIT 
C) ITB 
D) JITI 
A) BTI 
B) JIT 
C) ITB 
D) JITI

Question 8

The overall objective of the purchasing phase in the expenditure cycle is to:

Accepted Answer

A) Procure the right goods at the right amount and with the right price 
B) Procure the right goods at the right amount and with the right supplier 
C) Procure the right goods at the right amount,and to receive those goods at the right time 
D) Procure the right goods at the right amount,and to update the accounts payable record 
A) Procure the right goods at the right amount and with the right price 
B) Procure the right goods at the right amount and with the right supplier 
C) Procure the right goods at the right amount,and to receive those goods at the right time 
D) Procure the right goods at the right amount,and to update the accounts payable record

Question 9

The specialised software to handle the integration of suppliers and customers with the aim of producing and distributing goods and services by quantity,location and time to minimise costs and satisfy required service levels is referred to as:

Accepted Answer

A) ERP 
B) SCM 
C) RFID 
D) EDI 
A) ERP 
B) SCM 
C) RFID 
D) EDI

Question 10

A blind copy of the purchase order,which is sent to the receiving department,cannot:

Accepted Answer

A) Help deterring employee theft of high-value income goods. 
B) Help forcing the receiving clerk to actually count and examine the incoming goods. 
C) Expedite the preparation of receiving reports. 
D) be used for copying quantity and price information to the receiving report. 
A) Help deterring employee theft of high-value income goods. 
B) Help forcing the receiving clerk to actually count and examine the incoming goods. 
C) Expedite the preparation of receiving reports. 
D) be used for copying quantity and price information to the receiving report.

Question 11

Discuss how ERP systems can provide benefits to the expenditure cycle.

Accepted Answer

ERP systems assist with enabling and int

Question 12

When deciding which suppliers provide the best quality and service at the best price:

Accepted Answer

A) There is often a trade-off between price,quality and service. 
B) The overall business strategy of the organisation is not a concern. 
C) The type of product being procured is not a concern. 
D) The greatest focus should be placed on price. 
A) There is often a trade-off between price,quality and service. 
B) The overall business strategy of the organisation is not a concern. 
C) The type of product being procured is not a concern. 
D) The greatest focus should be placed on price.

Question 13

Which of the following technologies is not directly involved in the expenditure cycle?

Accepted Answer

A) ERP 
B) RFID 
C) SCM 
D) CRM 
A) ERP 
B) RFID 
C) SCM 
D) CRM

Question 14

Regarding technologies involved in the expenditure cycle,SCM stands for:

Accepted Answer

A) Supplier and Customer Management software 
B) Supply Chain Management software 
C) Service and Cash Management software 
D) Secure Cash Management software 
A) Supplier and Customer Management software 
B) Supply Chain Management software 
C) Service and Cash Management software 
D) Secure Cash Management software

Question 15

The business process of paying the right people the right amount at the right time is called …

Accepted Answer

A) Cash sales 
B) Accounts receivable 
C) Accounts payable 
D) General ledger updating 
A) Cash sales 
B) Accounts receivable 
C) Accounts payable 
D) General ledger updating

Question 16

When approving payments,an accounts payable clerk needs to examine:

Accepted Answer

A) Purchase order information 
B) Receiving reports 
C) Supplier information 
D) All of the options are correct. 
A) Purchase order information 
B) Receiving reports 
C) Supplier information 
D) All of the options are correct.

Question 17

Typically,when receiving goods in the expenditure cycle:

Accepted Answer

A) One should accept the delivery before recording goods received. 
B) One should record goods received before accepting the delivery. 
C) It doesn't matter whether accepting the delivery or the recording goods received comes first. 
D) One should ensure that there is always an invoice attached with all goods received. 
A) One should accept the delivery before recording goods received. 
B) One should record goods received before accepting the delivery. 
C) It doesn't matter whether accepting the delivery or the recording goods received comes first. 
D) One should ensure that there is always an invoice attached with all goods received.

Question 18

What are the risks associated with the purchasing phase when it is not correctly managed?

Accepted Answer

The accounts payable phase involves cash

Question 19

With regards to operational decisions,which of the following is NOT true?

Accepted Answer

A) Operational decisions in the expenditure cycle can be made by middle management. 
B) Operational decisions in the expenditure cycle can be made by operational staff. 
C) Operational decisions in the expenditure cycle create the policy framework within which the cycle operates. 
D) Operational decisions in the expenditure cycle relate only to a specific instance of the process. 
A) Operational decisions in the expenditure cycle can be made by middle management. 
B) Operational decisions in the expenditure cycle can be made by operational staff. 
C) Operational decisions in the expenditure cycle create the policy framework within which the cycle operates. 
D) Operational decisions in the expenditure cycle relate only to a specific instance of the process.

Question 20

What are the implications if an organisation is switching to an electronic payment system from a manual payment system?

Accepted Answer

A) Access security 
B) Timing 
C) Cash flow 
D) All of the options are correct 
A) Access security 
B) Timing 
C) Cash flow 
D) All of the options are correct

Which of the following is NOT a concern of the expenditure cycle?

Which of the following is NOT a strategy level decision to be made in the expenditure cycle?

Which of the following is a vital indicator when deciding whether a payment should be made to a supplier?

Accumulation of purchase requests should be done when:

The expenditure cycle commences when:

Give at least five KPI to measure the performance of the objective "To ensure payments made to suppliers are both timely and accurate".

An inventory management strategy where the goal is to time the ordering of goods so they arrive just before when they are to be used,so as to reduce inventory holding costs is referred to as:

The overall objective of the purchasing phase in the expenditure cycle is to:

The specialised software to handle the integration of suppliers and customers with the aim of producing and distributing goods and services by quantity,location and time to minimise costs and satisfy required service levels is referred to as:

A blind copy of the purchase order,which is sent to the receiving department,cannot:

Discuss how ERP systems can provide benefits to the expenditure cycle.

When deciding which suppliers provide the best quality and service at the best price:

Which of the following technologies is not directly involved in the expenditure cycle?

Regarding technologies involved in the expenditure cycle,SCM stands for:

The business process of paying the right people the right amount at the right time is called …

When approving payments,an accounts payable clerk needs to examine:

Typically,when receiving goods in the expenditure cycle:

What are the risks associated with the purchasing phase when it is not correctly managed?

With regards to operational decisions,which of the following is NOT true?

What are the implications if an organisation is switching to an electronic payment system from a manual payment system?

Systems Fundamentals

Systems Characteristics and Considerations

Database Concepts I

Database Concepts II

XBRL Reporting

System Mapping and Documentation

Internal Controls I

Internal Controls II

Transaction Cycle The Revenue Cycle

Transaction Cycle The Production Cycle

Transaction Cycle The HR Management and Payroll Cycle

Transaction Cycle The General Ledger and Financial Reporting Cycle

Systems Development

Auditing of Accounting Information Systems

Ethics, fraud and Computer Crime

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Exam 10: Transaction Cycle The Expenditure Cycle

Which of the following is NOT a concern of the expenditure cycle?

Which of the following is NOT a strategy level decision to be made in the expenditure cycle?

Which of the following is a vital indicator when deciding whether a payment should be made to a supplier?

Accumulation of purchase requests should be done when:

The expenditure cycle commences when:

Give at least five KPI to measure the performance of the objective "To ensure payments made to suppliers are both timely and accurate".

An inventory management strategy where the goal is to time the ordering of goods so they arrive just before when they are to be used,so as to reduce inventory holding costs is referred to as:

The overall objective of the purchasing phase in the expenditure cycle is to:

The specialised software to handle the integration of suppliers and customers with the aim of producing and distributing goods and services by quantity,location and time to minimise costs and satisfy required service levels is referred to as:

A blind copy of the purchase order,which is sent to the receiving department,cannot:

Discuss how ERP systems can provide benefits to the expenditure cycle.

When deciding which suppliers provide the best quality and service at the best price:

Which of the following technologies is not directly involved in the expenditure cycle?

Regarding technologies involved in the expenditure cycle,SCM stands for:

The business process of paying the right people the right amount at the right time is called …

When approving payments,an accounts payable clerk needs to examine:

Typically,when receiving goods in the expenditure cycle:

What are the risks associated with the purchasing phase when it is not correctly managed?

With regards to operational decisions,which of the following is NOT true?

What are the implications if an organisation is switching to an electronic payment system from a manual payment system?

Systems Fundamentals

Systems Characteristics and Considerations

Database Concepts I

Database Concepts II

XBRL Reporting

System Mapping and Documentation

Internal Controls I

Internal Controls II

Transaction Cycle The Revenue Cycle

Transaction Cycle The Production Cycle

Transaction Cycle The HR Management and Payroll Cycle

Transaction Cycle The General Ledger and Financial Reporting Cycle

Systems Development

Auditing of Accounting Information Systems

Ethics, fraud and Computer Crime

Filters