Question 1

The delivery of goods or provision of contracted services places the organization under an obligation to pay the vendor.

Accepted Answer

A) True 
 B)False  True

Question 2

Describe some factors which may complicate competitive bidding.

Accepted Answer

Several factors may complicate competitive bidding. First, only one or two vendors may choose to respond to the solicitation. The other vendors may feel that the vendor would not be worthwhile or that they have little expectations of winning. Second, several vendors may respond, but the purchasing department may decide to look elsewhere for the required goods or services and not to accept any of the bids. Third, where complex goods or services are involved, the vendors' proposals may vary so much that the purchasing agent and requesting managers find themselves trying to compare "applies with oranges."

Question 3

"Resources" in the purchasing process refer to what?

Accepted Answer

A)  To tangible goods and to intangible services 
B)  To tangible and intangible goods and to services 
C)  To intangible goods and to tangible services 
D)  To intangible goods and to services 
A)  To tangible goods and to intangible services 
B)  To tangible and intangible goods and to services 
C)  To intangible goods and to tangible services 
D)  To intangible goods and to services B

Question 4

Discuss risks associated with the payment of invoices (i.e., disbursement of cash) in the purchasing process.

Accepted Answer

Payment made for goods/services that are

Question 5

What is a unique aspect of vendor maintenance?

Accepted Answer

A)  Add a new vendor 
B)  1099 tasks 
C)  Deactivate a vendor 
D)  Tax Form 1099 
A)  Add a new vendor 
B)  1099 tasks 
C)  Deactivate a vendor 
D)  Tax Form 1099

Question 6

The addition of a new vendor is handled in the vendor account maintenance function of the purchase order module.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following are the principal reports required for the effective management of the purchasing process?

Accepted Answer

A)  Vendor performance. 
B)  Outstanding sales orders. 
C)  Discounts taken. 
D)  All of the above. 
A)  Vendor performance. 
B)  Outstanding sales orders. 
C)  Discounts taken. 
D)  All of the above.

Question 8

In most AISs, the purchasing function is represented by two modules-purchase order and accounts receivable.

Accepted Answer

A) True 
 B)False

Question 9

What are the advantages of EDI over paper purchase orders?

Accepted Answer

By linking the accounting info

Question 10

Define and explain the purpose of retainages.

Accepted Answer

Retainages are most commonly required fo

Question 11

Which is an example of an acquired good?

Accepted Answer

A)  Patents and janitorial services 
B)  Computer programs and consultants 
C)  Fixed assets and raw materials 
D)  Catering company and accounting firms 
A)  Patents and janitorial services 
B)  Computer programs and consultants 
C)  Fixed assets and raw materials 
D)  Catering company and accounting firms

Question 12

Which of the following is/are the principal report(s) required for the effective management of the purchasing process?

Accepted Answer

A)  Vendor performance. 
B)  Outstanding sales orders. 
C)  Discounts taken. 
D)  All of the above. 
A)  Vendor performance. 
B)  Outstanding sales orders. 
C)  Discounts taken. 
D)  All of the above.

Question 13

Identify and describe the two data entry points for the purchasing process that attention must be focused on.

Accepted Answer

Purchase order entry. Data entry

Question 14

The following actions are associated with which of the following triggers in the purchasing process:

Accepted Answer

A)  Associate/match purchase order, receiving report, vendor invoice. 
B)  Add to open vendor invoice file. 
C)  Update vendor master file. 
D)  Receipt of goods. 
E)  Shipment to customer. 
F) Arrival of due date for payment.
G) None of the above. 
A)  Associate/match purchase order, receiving report, vendor invoice. 
B)  Add to open vendor invoice file. 
C)  Update vendor master file. 
D)  Receipt of goods. 
E)  Shipment to customer. 
F) Arrival of due date for payment.
G) None of the above.

Question 15

What is a common flow of data in the purchasing process?

Accepted Answer

A)  Sales order processing, shipping, invoicing, and receiving cash 
B)  Receiving inventory, storing inventory, and shipping inventory 
C)  Ordering goods, receiving, invoicing, and disbursing cash 
D)  Ordering goods, shipping, and disbursing cash 
A)  Sales order processing, shipping, invoicing, and receiving cash 
B)  Receiving inventory, storing inventory, and shipping inventory 
C)  Ordering goods, receiving, invoicing, and disbursing cash 
D)  Ordering goods, shipping, and disbursing cash

Question 16

What should disbursement records include?

Accepted Answer

A)  Date, name of payee, amount of check, and description of good or service 
B)  Date, name of payee, amount of check, and vendor's invoice number 
C)  Date, name and number of payee, amount of check and vendor's invoice number 
D)  Date, name of payee, amount, description of good or service, and vendor's invoice number 
A)  Date, name of payee, amount of check, and description of good or service 
B)  Date, name of payee, amount of check, and vendor's invoice number 
C)  Date, name and number of payee, amount of check and vendor's invoice number 
D)  Date, name of payee, amount, description of good or service, and vendor's invoice number

Question 17

Recording a payable after the invoice is matched with other documents requires which journal entry?

Accepted Answer

A)  Debit to cash; credit to accounts payable 
B)  Debit to accounts payable; credit to unbilled payables 
C)  Debit to unbilled payables; credit to cash 
D)  Debit to unbilled payables; credit to accounts payable 
A)  Debit to cash; credit to accounts payable 
B)  Debit to accounts payable; credit to unbilled payables 
C)  Debit to unbilled payables; credit to cash 
D)  Debit to unbilled payables; credit to accounts payable

Question 18

After an organization compares the vendor invoice with the purchase order data and the receiving data, the invoice data are then keyed into which file?

Accepted Answer

A)  Open purchase order file. 
B)  Open vendor invoice file. 
C)  Open accounts transaction file. 
D)  Open customer invoice file. 
A)  Open purchase order file. 
B)  Open vendor invoice file. 
C)  Open accounts transaction file. 
D)  Open customer invoice file.

Question 19

What are two major data entry processes (think of the processes that require the most entry items per transaction)?

Accepted Answer

A)  Creation and issuance of purchase orders; recording of cash disbursements. 
B)  Creation and issuance of purchase orders; recording of merchandise received and services rendered. 
C)  Recording of merchandise received and services rendered; recording of cash disbursements. 
D)  Creation and issuance of purchase orders; recording of accounts payable. 
A)  Creation and issuance of purchase orders; recording of cash disbursements. 
B)  Creation and issuance of purchase orders; recording of merchandise received and services rendered. 
C)  Recording of merchandise received and services rendered; recording of cash disbursements. 
D)  Creation and issuance of purchase orders; recording of accounts payable.

Question 20

The most common deficiency in audit trails in the purchasing process is postings from the cash disbursements transaction file.

Accepted Answer

A) True 
 B)False

The delivery of goods or provision of contracted services places the organization under an obligation to pay the vendor.

Describe some factors which may complicate competitive bidding.

"Resources" in the purchasing process refer to what?

Discuss risks associated with the payment of invoices (i.e., disbursement of cash) in the purchasing process.

What is a unique aspect of vendor maintenance?

The addition of a new vendor is handled in the vendor account maintenance function of the purchase order module.

Which of the following are the principal reports required for the effective management of the purchasing process?

In most AISs, the purchasing function is represented by two modules-purchase order and accounts receivable.

What are the advantages of EDI over paper purchase orders?

Define and explain the purpose of retainages.

Which is an example of an acquired good?

Which of the following is/are the principal report(s) required for the effective management of the purchasing process?

Identify and describe the two data entry points for the purchasing process that attention must be focused on.

The following actions are associated with which of the following triggers in the purchasing process:

What is a common flow of data in the purchasing process?

What should disbursement records include?

Recording a payable after the invoice is matched with other documents requires which journal entry?

After an organization compares the vendor invoice with the purchase order data and the receiving data, the invoice data are then keyed into which file?

What are two major data entry processes (think of the processes that require the most entry items per transaction)?

The most common deficiency in audit trails in the purchasing process is postings from the cash disbursements transaction file.

Significance of Accounting Information Systems and the Accountants Role

Accounting Systems Documentation

Essential Elements and Basic Activities of Accounting Systems

Data Flows, Activities, and Structure of Accounting Systems

Reporting Process, Coding Methods, and Audit Trails

Internal Control and Risk Assessment

Control Activities

The Financial Process

The Revenue Process

The Inventory Process

Database Structure of Accounting Systems

Developing a Relational Database for an Accounting Information System

Electronic Business

Ais Selection and Implementation

Filters

Exam 10: The Purchasing Process

The delivery of goods or provision of contracted services places the organization under an obligation to pay the vendor.

Describe some factors which may complicate competitive bidding.

"Resources" in the purchasing process refer to what?

Discuss risks associated with the payment of invoices (i.e., disbursement of cash) in the purchasing process.

What is a unique aspect of vendor maintenance?

The addition of a new vendor is handled in the vendor account maintenance function of the purchase order module.

Which of the following are the principal reports required for the effective management of the purchasing process?

In most AISs, the purchasing function is represented by two modules-purchase order and accounts receivable.

What are the advantages of EDI over paper purchase orders?

Define and explain the purpose of retainages.

Which is an example of an acquired good?

Which of the following is/are the principal report(s) required for the effective management of the purchasing process?

Identify and describe the two data entry points for the purchasing process that attention must be focused on.

The following actions are associated with which of the following triggers in the purchasing process:

What is a common flow of data in the purchasing process?

What should disbursement records include?

Recording a payable after the invoice is matched with other documents requires which journal entry?

After an organization compares the vendor invoice with the purchase order data and the receiving data, the invoice data are then keyed into which file?

What are two major data entry processes (think of the processes that require the most entry items per transaction)?

The most common deficiency in audit trails in the purchasing process is postings from the cash disbursements transaction file.

Significance of Accounting Information Systems and the Accountants Role

Accounting Systems Documentation

Essential Elements and Basic Activities of Accounting Systems

Data Flows, Activities, and Structure of Accounting Systems

Reporting Process, Coding Methods, and Audit Trails

Internal Control and Risk Assessment

Control Activities

The Financial Process

The Revenue Process

The Inventory Process

Database Structure of Accounting Systems

Developing a Relational Database for an Accounting Information System

Electronic Business

Ais Selection and Implementation

Filters