Question 1

Which of the following sequence in the expenditure cycle is correct?

Accepted Answer

A) collect requests for goods -> create purchase requisition -> choose the supplier -> create the purchase order 
B) collect requests for goods -> choose the supplier -> create purchase requisition -> create the purchase order 
C) create purchase requisition -> collect requests for goods -> choose the supplier -> create the purchase order 
D) create the purchase order -> collect requests for goods -> choose the supplier -> create purchase requisition 
A) collect requests for goods -> create purchase requisition -> choose the supplier -> create the purchase order 
B) collect requests for goods -> choose the supplier -> create purchase requisition -> create the purchase order 
C) create purchase requisition -> collect requests for goods -> choose the supplier -> create the purchase order 
D) create the purchase order -> collect requests for goods -> choose the supplier -> create purchase requisition

Question 2

A differentiated strategy would be better served by selecting suppliers with:

Accepted Answer

A) High quality products,good service standards,and low prices 
B) High quality products and good service standards. 
C) Suitable quality products,suitable service standards and low prices. 
D) Suitable quality products,good service standards and low prices. 
A) High quality products,good service standards,and low prices 
B) High quality products and good service standards. 
C) Suitable quality products,suitable service standards and low prices. 
D) Suitable quality products,good service standards and low prices.

Question 3

Which of the following is NOT a KPI that can be used to evaluate the objective "To produce purchase orders that are accurate and appropriately authorised"?

Accepted Answer

A) Number of purchases from unapproved suppliers 
B) Number of supplier complaints 
C) Number of accounts payable adjustments 
D) Discounts claimed/overlooked 
A) Number of purchases from unapproved suppliers 
B) Number of supplier complaints 
C) Number of accounts payable adjustments 
D) Discounts claimed/overlooked

Question 4

Describe the objectives of the purchasing phase of the expenditure cycle and how these objectives can be achieved.

Accepted Answer

This phase interacts extensively with ex

Question 5

Normally,when the stock on hand drops down to the automatic reorder point:

Accepted Answer

A) A purchase request is generated automatically. 
B) A purchase requisition is generated automatically. 
C) A purchase order is generated automatically 
D) All of the options are correct. 
A) A purchase request is generated automatically. 
B) A purchase requisition is generated automatically. 
C) A purchase order is generated automatically 
D) All of the options are correct.

Question 6

Which of the following is NOT a check during the requisition stage of the expenditure cycle?

Accepted Answer

A) The quantities requested are reasonable. 
B) The request is for valid goods. 
C) The request has been authorised correctly. 
D) The supplier is on the approved list. 
A) The quantities requested are reasonable. 
B) The request is for valid goods. 
C) The request has been authorised correctly. 
D) The supplier is on the approved list.

Question 7

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

Accepted Answer

A) Maintain the accounts payable record. 
B) Pay the right people the right amount at the right time 
C) Determine whether an invoice should be paid. 
D) Ensure suppliers are neither overpaid nor underpaid. 
A) Maintain the accounts payable record. 
B) Pay the right people the right amount at the right time 
C) Determine whether an invoice should be paid. 
D) Ensure suppliers are neither overpaid nor underpaid.

Question 8

Goods received data cannot be used to:

Accepted Answer

A) Investigate the list of items received from suppliers. 
B) Update the inventory status of relevant goods 
C) Verify invoice validity during the accounts payable phase. 
D) Investigate the details of open purchase orders. 
A) Investigate the list of items received from suppliers. 
B) Update the inventory status of relevant goods 
C) Verify invoice validity during the accounts payable phase. 
D) Investigate the details of open purchase orders.

Question 9

In the order goods stage of the expenditure cycle,which of the following is designed to reduce the risk of collusion and fraud?

Accepted Answer

A) Purchase orders are raised only once each week. 
B) The decision to purchase more goods or materials is made by the purchasing officer. 
C) The person who places orders is different from the one who is responsible for maintenance of the list of approved suppliers. 
D) Purchase order forms are pre-numbered. 
A) Purchase orders are raised only once each week. 
B) The decision to purchase more goods or materials is made by the purchasing officer. 
C) The person who places orders is different from the one who is responsible for maintenance of the list of approved suppliers. 
D) Purchase order forms are pre-numbered.

Question 10

Give at least three examples of strategy level decisions in the expenditure cycle.

Accepted Answer

Whether the organisation should consolid

Question 11

Give at least three examples of operation level decisions in the expenditure cycle.

Accepted Answer

Determining the optimal level of invento

Question 12

To prevent employees from receiving kickbacks in the ordering process,an organisation can do the following except:

Accepted Answer

A) Enforce job rotation. 
B) Enforce annual leave. 
C) Enforce corporate gift policies. 
D) Enforce the use of pre-approved suppliers. 
A) Enforce job rotation. 
B) Enforce annual leave. 
C) Enforce corporate gift policies. 
D) Enforce the use of pre-approved suppliers.

Question 13

A company buys in finished product to sell on to customers.Which of the following descriptions is the best reason to use an ERP system to support the expenditure cycle?

Accepted Answer

A) Improved connections between purchasing and inventory departments. 
B) Centralised database. 
C) Tighter linkages between demand and supply function. 
D) Electronic transmission of purchase orders to suppliers. 
A) Improved connections between purchasing and inventory departments. 
B) Centralised database. 
C) Tighter linkages between demand and supply function. 
D) Electronic transmission of purchase orders to suppliers.

Question 14

In order to correctly identify how much inventory to purchase it is important to be familiar with the current demand for the goods.This demand for the goods mainly comes from:

Accepted Answer

A) The conversion process. 
B) The expenditure cycle. 
C) The sales process. 
D) Demand forecast. 
A) The conversion process. 
B) The expenditure cycle. 
C) The sales process. 
D) Demand forecast.

Question 15

Poor payment practices can: (i)damage cash flow (ii)damage supplier relationships (iii)lead to fraud (iv)increase the chance of collusion.

Accepted Answer

A) (i)(ii)only 
B) (i)(ii)(iv)only 
C) (i)(ii)(iii)only 
D) (i)(ii)(iii)(iv) 
A) (i)(ii)only 
B) (i)(ii)(iv)only 
C) (i)(ii)(iii)only 
D) (i)(ii)(iii)(iv)

Question 16

Which of the following is NOT a KPI that can be used to evaluate the objective "To ensure payments made to suppliers are both timely and accurate"?

Accepted Answer

A) Number of purchases from approved suppliers. 
B) Financial delegations compliance. 
C) Average payment time. 
D) Number of supplier complaints. 
A) Number of purchases from approved suppliers. 
B) Financial delegations compliance. 
C) Average payment time. 
D) Number of supplier complaints.

Question 17

The types of counts and checks conducted during receiving goods will vary depending on the ________.

Accepted Answer

A) Availability of the receiving clerk. 
B) The corporate policy on how often incoming goods should be checked. 
C) Volume and value of goods received. 
D) All of the options are correct. 
A) Availability of the receiving clerk. 
B) The corporate policy on how often incoming goods should be checked. 
C) Volume and value of goods received. 
D) All of the options are correct.

Question 18

Discuss how organisations behave differently when pursuing a cost leadership strategy and a product differentiation strategy.

Accepted Answer

An organisation seeking to maintain or i

Question 19

Which of the following technologies can provide accurate,timely and cost-effective data sharing to the expenditure cycle?

Accepted Answer

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

Question 20

Typically,which of the following document set will be handled by the purchase requisition officer during the determination of demand for goods?

Accepted Answer

A) Inventory data and purchase order. 
B) Purchase request and supplier data. 
C) Sales data and inventory data. 
D) Supplier data and sales data. 
A) Inventory data and purchase order. 
B) Purchase request and supplier data. 
C) Sales data and inventory data. 
D) Supplier data and sales data.

Which of the following sequence in the expenditure cycle is correct?

A differentiated strategy would be better served by selecting suppliers with:

Which of the following is NOT a KPI that can be used to evaluate the objective "To produce purchase orders that are accurate and appropriately authorised"?

Describe the objectives of the purchasing phase of the expenditure cycle and how these objectives can be achieved.

Normally,when the stock on hand drops down to the automatic reorder point:

Which of the following is NOT a check during the requisition stage of the expenditure cycle?

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

Goods received data cannot be used to:

In the order goods stage of the expenditure cycle,which of the following is designed to reduce the risk of collusion and fraud?

Give at least three examples of strategy level decisions in the expenditure cycle.

Give at least three examples of operation level decisions in the expenditure cycle.

To prevent employees from receiving kickbacks in the ordering process,an organisation can do the following except:

A company buys in finished product to sell on to customers.Which of the following descriptions is the best reason to use an ERP system to support the expenditure cycle?

In order to correctly identify how much inventory to purchase it is important to be familiar with the current demand for the goods.This demand for the goods mainly comes from:

Poor payment practices can: (i)damage cash flow (ii)damage supplier relationships (iii)lead to fraud (iv)increase the chance of collusion.

Which of the following is NOT a KPI that can be used to evaluate the objective "To ensure payments made to suppliers are both timely and accurate"?

The types of counts and checks conducted during receiving goods will vary depending on the ________.

Discuss how organisations behave differently when pursuing a cost leadership strategy and a product differentiation strategy.

Which of the following technologies can provide accurate,timely and cost-effective data sharing to the expenditure cycle?

Typically,which of the following document set will be handled by the purchase requisition officer during the determination of demand for goods?

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

Exam 10: Transaction Cycle The Expenditure Cycle

Which of the following sequence in the expenditure cycle is correct?

A differentiated strategy would be better served by selecting suppliers with:

Which of the following is NOT a KPI that can be used to evaluate the objective "To produce purchase orders that are accurate and appropriately authorised"?

Describe the objectives of the purchasing phase of the expenditure cycle and how these objectives can be achieved.

Normally,when the stock on hand drops down to the automatic reorder point:

Which of the following is NOT a check during the requisition stage of the expenditure cycle?

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

Goods received data cannot be used to:

In the order goods stage of the expenditure cycle,which of the following is designed to reduce the risk of collusion and fraud?

Give at least three examples of strategy level decisions in the expenditure cycle.

Give at least three examples of operation level decisions in the expenditure cycle.

To prevent employees from receiving kickbacks in the ordering process,an organisation can do the following except:

A company buys in finished product to sell on to customers.Which of the following descriptions is the best reason to use an ERP system to support the expenditure cycle?

In order to correctly identify how much inventory to purchase it is important to be familiar with the current demand for the goods.This demand for the goods mainly comes from:

Poor payment practices can: (i)damage cash flow (ii)damage supplier relationships (iii)lead to fraud (iv)increase the chance of collusion.

Which of the following is NOT a KPI that can be used to evaluate the objective "To ensure payments made to suppliers are both timely and accurate"?

The types of counts and checks conducted during receiving goods will vary depending on the ________.

Discuss how organisations behave differently when pursuing a cost leadership strategy and a product differentiation strategy.

Which of the following technologies can provide accurate,timely and cost-effective data sharing to the expenditure cycle?

Typically,which of the following document set will be handled by the purchase requisition officer during the determination of demand for goods?

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