Question 1

To achieve the overall objective of the purchasing phase in the expenditure cycle,an organisation needs to:

Accepted Answer

A) Approve and authorise initiated purchases properly. 
B) Ensure that accepted goods and services must meet quality and delivery specifications. 
C) Record all purchase commitments and obligations accurately. 
D) All of the options are correct. 
A) Approve and authorise initiated purchases properly. 
B) Ensure that accepted goods and services must meet quality and delivery specifications. 
C) Record all purchase commitments and obligations accurately. 
D) All of the options are correct.

Question 2

A discount should only be taken where:

Accepted Answer

A) Cash flow is sufficient to support the early payment. 
B) The discount offered is a reasonable inducement. 
C) Corporate policy allows discounts to be taken. 
D) All of the options are correct. 
A) Cash flow is sufficient to support the early payment. 
B) The discount offered is a reasonable inducement. 
C) Corporate policy allows discounts to be taken. 
D) All of the options are correct.

Question 3

Which of the following is NOT a KPI that can be used to evaluate the objective "To ensure goods are received in a timely fashion and both the quality and quantity of goods delivered are checked before acceptance"?

Accepted Answer

A) Number of quality complaints. 
B) Number of requester complaints. 
C) Number of returns to suppliers. 
D) Number of erroneous receiving reports. 
A) Number of quality complaints. 
B) Number of requester complaints. 
C) Number of returns to suppliers. 
D) Number of erroneous receiving reports.

Question 4

Goods and services should be obtained from:

Accepted Answer

A) Authorised and pre-vetted suppliers. 
B) Suppliers that ask for the lowest price. 
C) Suppliers that provide the highest quality. 
D) Suppliers within the closest geographic proximity to the company as this will provide lower transport costs. 
A) Authorised and pre-vetted suppliers. 
B) Suppliers that ask for the lowest price. 
C) Suppliers that provide the highest quality. 
D) Suppliers within the closest geographic proximity to the company as this will provide lower transport costs.

Question 5

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

Accepted Answer

In terms of the purchasing phase,failure

Question 6

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

Accepted Answer

The objective is to pay the right people

Question 7

Which of the following does not need to be undertaken during the accounts payable phase?

Accepted Answer

A) The making of payments by authorised employees only. 
B) The making of both accurate and timely payments. 
C) Maximisation of any settlement terms. 
D) Procuring the right goods for the right amount and at the right time. 
A) The making of payments by authorised employees only. 
B) The making of both accurate and timely payments. 
C) Maximisation of any settlement terms. 
D) Procuring the right goods for the right amount and at the right time.

Question 8

In terms of the data produced by expenditure activities,an organisation may store detailed data related to:

Accepted Answer

A) Formal product requisitions only. 
B) Both informal and formal product requisitions. 
C) Formal product requisitions that have been initiated and fulfilled only. 
D) Both informal and formal product requisitions that have been initiated and fulfilled. 
A) Formal product requisitions only. 
B) Both informal and formal product requisitions. 
C) Formal product requisitions that have been initiated and fulfilled only. 
D) Both informal and formal product requisitions that have been initiated and fulfilled.

Question 9

Which of the following is NOT an operational decision to be made in the expenditure cycle?

Accepted Answer

A) Deciding which suppliers provide the best quality and service at the best prices. 
B) Identifying if sufficient cash is available to take advantage of any discounts suppliers have offered. 
C) Determining how payment can be made to suppliers in order to maximise cash flow. 
D) Determining whether expenditure business processes align with overall business strategy. 
A) Deciding which suppliers provide the best quality and service at the best prices. 
B) Identifying if sufficient cash is available to take advantage of any discounts suppliers have offered. 
C) Determining how payment can be made to suppliers in order to maximise cash flow. 
D) Determining whether expenditure business processes align with overall business strategy.

Question 10

A cost leadership strategy would indicate that:

Accepted Answer

A) Suppliers who can provide goods of suitable quality at a lower price should be selected. 
B) Suppliers who can provide goods at the lowest price should be selected. 
C) Suppliers who can provide goods at a lower price and the longest settlement period should be selected. 
D) Suppliers aligned with the organisation's overall business strategy should be selected. 
A) Suppliers who can provide goods of suitable quality at a lower price should be selected. 
B) Suppliers who can provide goods at the lowest price should be selected. 
C) Suppliers who can provide goods at a lower price and the longest settlement period should be selected. 
D) Suppliers aligned with the organisation's overall business strategy should be selected.

Question 11

RFID is more suitable for:

Accepted Answer

A) A car manufacturer. 
B) A producer of hand-made luxury handbags. 
C) A large restaurant. 
D) A small bottle shop. 
A) A car manufacturer. 
B) A producer of hand-made luxury handbags. 
C) A large restaurant. 
D) A small bottle shop.

Question 12

Cash budget is a budget showing:

Accepted Answer

A) Forecast levels of future cash to be paid to suppliers. 
B) Forecast levels of future cash flows into and out of the organisation. 
C) Forecast levels of future cash to be received from customers. 
D) Forecast levels of future cash needs by a retail business. 
A) Forecast levels of future cash to be paid to suppliers. 
B) Forecast levels of future cash flows into and out of the organisation. 
C) Forecast levels of future cash to be received from customers. 
D) Forecast levels of future cash needs by a retail business.

Question 13

What are the strategic implications of the expenditure cycle?

Accepted Answer

The expenditure cycle is strategically i

Question 14

To check that there was a purchase order placed for the goods,goods receiving staff should check the following except:

Accepted Answer

A) The purchase number is valid. 
B) The goods and supplier listed on the purchase order approximate those on the delivery document. 
C) The goods listed on that purchase order have not been received already. 
D) The price on the purchase order agrees with the price on the delivery document. 
A) The purchase number is valid. 
B) The goods and supplier listed on the purchase order approximate those on the delivery document. 
C) The goods listed on that purchase order have not been received already. 
D) The price on the purchase order agrees with the price on the delivery document.

Question 15

Which of the following operational decisions is part of the expenditure cycle?

Accepted Answer

A) Scheduling production to satisfy forecast demand. 
B) Responding to customer queries. 
C) Reviewing employee performance. 
D) Deciding which supplier to use for a specific order. 
A) Scheduling production to satisfy forecast demand. 
B) Responding to customer queries. 
C) Reviewing employee performance. 
D) Deciding which supplier to use for a specific order.

Question 16

An example of a suitable key performance indicator (KPI)for the objective of producing purchase orders that are accurate and correctly authorised is:

Accepted Answer

A) # of purchases from approved suppliers. 
B) # of requester complaints. 
C) # of returns to suppliers. 
D) $ of unauthorised payments. 
A) # of purchases from approved suppliers. 
B) # of requester complaints. 
C) # of returns to suppliers. 
D) $ of unauthorised payments.

Question 17

Which of the following cannot be improved by the use of appropriate technologies in the expenditure cycle?

Accepted Answer

A) Transparency of cash payments. 
B) Management of cash payments. 
C) Timeliness of cash payments. 
D) Recovery of incorrect cash payments. 
A) Transparency of cash payments. 
B) Management of cash payments. 
C) Timeliness of cash payments. 
D) Recovery of incorrect cash payments.

Question 18

An example of a suitable key performance indicator (KPI)for the objective of ensuring payments are made to suppliers are timely and accurate is:

Accepted Answer

A) $ overpayments 
B) # of quality complaints 
C) # of requester complaints 
D) # of accounts payable adjustments 
A) $ overpayments 
B) # of quality complaints 
C) # of requester complaints 
D) # of accounts payable adjustments

Question 19

To decide whether a payment should be made to a supplier,an accounts payable clerk should:

Accepted Answer

A) Examine the receiving report. 
B) Be involved in the interaction with suppliers of the goods during the purchasing phase 
C) Ensure there are on-going good relationships with suppliers. 
D) Search for any unpaid invoices from that supplier. 
A) Examine the receiving report. 
B) Be involved in the interaction with suppliers of the goods during the purchasing phase 
C) Ensure there are on-going good relationships with suppliers. 
D) Search for any unpaid invoices from that supplier.

To achieve the overall objective of the purchasing phase in the expenditure cycle,an organisation needs to:

A discount should only be taken where:

Which of the following is NOT a KPI that can be used to evaluate the objective "To ensure goods are received in a timely fashion and both the quality and quantity of goods delivered are checked before acceptance"?

Goods and services should be obtained from:

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

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

Which of the following does not need to be undertaken during the accounts payable phase?

In terms of the data produced by expenditure activities,an organisation may store detailed data related to:

Which of the following is NOT an operational decision to be made in the expenditure cycle?

A cost leadership strategy would indicate that:

RFID is more suitable for:

Cash budget is a budget showing:

What are the strategic implications of the expenditure cycle?

To check that there was a purchase order placed for the goods,goods receiving staff should check the following except:

Which of the following operational decisions is part of the expenditure cycle?

An example of a suitable key performance indicator (KPI)for the objective of producing purchase orders that are accurate and correctly authorised is:

Which of the following cannot be improved by the use of appropriate technologies in the expenditure cycle?

An example of a suitable key performance indicator (KPI)for the objective of ensuring payments are made to suppliers are timely and accurate is:

To decide whether a payment should be made to a supplier,an accounts payable clerk should:

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

To achieve the overall objective of the purchasing phase in the expenditure cycle,an organisation needs to:

A discount should only be taken where:

Which of the following is NOT a KPI that can be used to evaluate the objective "To ensure goods are received in a timely fashion and both the quality and quantity of goods delivered are checked before acceptance"?

Goods and services should be obtained from:

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

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

Which of the following does not need to be undertaken during the accounts payable phase?

In terms of the data produced by expenditure activities,an organisation may store detailed data related to:

Which of the following is NOT an operational decision to be made in the expenditure cycle?

A cost leadership strategy would indicate that:

RFID is more suitable for:

Cash budget is a budget showing:

What are the strategic implications of the expenditure cycle?

To check that there was a purchase order placed for the goods,goods receiving staff should check the following except:

Which of the following operational decisions is part of the expenditure cycle?

An example of a suitable key performance indicator (KPI)for the objective of producing purchase orders that are accurate and correctly authorised is:

Which of the following cannot be improved by the use of appropriate technologies in the expenditure cycle?

An example of a suitable key performance indicator (KPI)for the objective of ensuring payments are made to suppliers are timely and accurate is:

To decide whether a payment should be made to a supplier,an accounts payable clerk should:

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