Question 1

Which of the following is effected through the Purchase Order module?

Accepted Answer

A)  Issuance of purchase orders 
B)  Monitoring of outstanding purchase orders 
C)  Reporting on outstanding purchase orders 
D)  All of the above 
A)  Issuance of purchase orders 
B)  Monitoring of outstanding purchase orders 
C)  Reporting on outstanding purchase orders 
D)  All of the above

Question 2

Retainages are commonly required for construction contractors.

Accepted Answer

A) True 
 B)False

Question 3

What is a major source of purchasing errors?

Accepted Answer

A)  Data entry errors 
B)  Not setting budgets for managers 
C)  Not validating the purchase order 
D)  EDI errors 
A)  Data entry errors 
B)  Not setting budgets for managers 
C)  Not validating the purchase order 
D)  EDI errors

Question 4

While a budget is important for planning and control, it does not have any special purpose in the purchasing process.

Accepted Answer

A) True 
 B)False

Question 5

What are alternative names for the purchasing process?

Accepted Answer

A)  Expenditure, receiving, procurement 
B)  Receiving, expenditure, acquisition 
C)  Ordering, receiving, procurement 
D)  Expenditure, procurement, acquisition 
A)  Expenditure, receiving, procurement 
B)  Receiving, expenditure, acquisition 
C)  Ordering, receiving, procurement 
D)  Expenditure, procurement, acquisition

Question 6

Which of the following modules would you expect to find in the purchasing function?

Accepted Answer

A)  Sales Order Processing, Accounts Payable, Vendor Invoicing, Disbursements. 
B)  Purchase Order Processing, Accounts Receivable, Receiving, Vendor Invoicing. 
C)  Purchase Order Processing, Accounts Payable, Vendor Invoicing, Disbursements. 
D)  Sales Order Processing, Accounts Payable, Vendor Invoicing, Receiving, Cash Receipts. 
A)  Sales Order Processing, Accounts Payable, Vendor Invoicing, Disbursements. 
B)  Purchase Order Processing, Accounts Receivable, Receiving, Vendor Invoicing. 
C)  Purchase Order Processing, Accounts Payable, Vendor Invoicing, Disbursements. 
D)  Sales Order Processing, Accounts Payable, Vendor Invoicing, Receiving, Cash Receipts.

Question 7

Discuss two of the risks associated with the procurement of vendor goods and services.

Accepted Answer

1) Risks related to improper purchases:

Question 8

Cash disbursements to vendors are recorded in the cash disbursements transaction file which is then used to update the open vendor invoice file and the vendor master file.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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

Accepted Answer

A)  Vendor performance; outstanding purchase orders 
B)  Vendor invoices; discounts lost 
C)  All of the above 
D)  B only 
A)  Vendor performance; outstanding purchase orders 
B)  Vendor invoices; discounts lost 
C)  All of the above 
D)  B only

Question 11

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

Accepted Answer

A)  Purchase order file 
B)  Open invoice file 
C)  Accounts payable file 
D)  Receiving transaction file 
A)  Purchase order file 
B)  Open invoice file 
C)  Accounts payable file 
D)  Receiving transaction file

Question 12

Invoices for received items not yet paid are stored in the purchases transaction file.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT a reason why a company would be motivated to use an EDI system for purchase orders?

Accepted Answer

A)  With an EDI system, purchase orders can be sent through the computer to a vendor. 
B)  An EDI system is inexpensive to purchase and easy to implement. 
C)  EDI systems reduce the possibility of human data entry error. 
D)  With the computerized EDI system, there is less paperwork involved. 
A)  With an EDI system, purchase orders can be sent through the computer to a vendor. 
B)  An EDI system is inexpensive to purchase and easy to implement. 
C)  EDI systems reduce the possibility of human data entry error. 
D)  With the computerized EDI system, there is less paperwork involved.

Question 14

Identify and describe at least three principal reports required for effective management of the purchasing process.

Accepted Answer

Students may choose any three of the fol

Question 15

What has replaced the traditional paper purchase order?

Accepted Answer

A)  Electronic Data Exchange 
B)  Facsimile 
C)  Optical scanners 
D)  Graphical user interfaces 
A)  Electronic Data Exchange 
B)  Facsimile 
C)  Optical scanners 
D)  Graphical user interfaces

Question 16

List two reports generated by the purchasing process and indicate what they are used for.

Accepted Answer

Vendor performance (reviews performance

Question 17

Which of the following control activities ensure that the hours worked by a contractor are valid?

Accepted Answer

A)  The contractor provides a weekly printout of time charged per job from his company's system. 
B)  All employee time should be positive and bear a reasonable relationship to the standard 40-hour work week. 
C)  Claims for large hours or excessive wage rates are reviewed quarterly by the Vice President of Human Resources. 
D)  The contracting office provides the names and tax identification numbers of all contractors prior to the processing of payroll. 
A)  The contractor provides a weekly printout of time charged per job from his company's system. 
B)  All employee time should be positive and bear a reasonable relationship to the standard 40-hour work week. 
C)  Claims for large hours or excessive wage rates are reviewed quarterly by the Vice President of Human Resources. 
D)  The contracting office provides the names and tax identification numbers of all contractors prior to the processing of payroll.

Question 18

When is purchasing initiated?

Accepted Answer

A)  When inventory records indicate that the quantity on hand has reached the average order size 
B)  When an order has been placed with the vendor 
C)  When a manager authorizes a purchase requisition and forwards it to the purchasing department 
D)  When a manager approves a purchase order 
A)  When inventory records indicate that the quantity on hand has reached the average order size 
B)  When an order has been placed with the vendor 
C)  When a manager authorizes a purchase requisition and forwards it to the purchasing department 
D)  When a manager approves a purchase order

Question 19

Where is there rarely a deficiency in the audit trail between?

Accepted Answer

A)  Purchases journal and cash disbursements 
B)  Purchases journal and vendor accounts 
C)  Vendor accounts and cash disbursements 
D)  Cash disbursements and vendor accounts 
A)  Purchases journal and cash disbursements 
B)  Purchases journal and vendor accounts 
C)  Vendor accounts and cash disbursements 
D)  Cash disbursements and vendor accounts

Question 20

Which of the following are actions that result from the receipt of a properly authorized purchase requisition?

Accepted Answer

A)  Issuance of a purchase order. 
B)  Adding the record to the open purchase order file. 
C)  Both a and b. 
D)  Neither a nor b. 
A)  Issuance of a purchase order. 
B)  Adding the record to the open purchase order file. 
C)  Both a and b. 
D)  Neither a nor b.

Which of the following is effected through the Purchase Order module?

Retainages are commonly required for construction contractors.

What is a major source of purchasing errors?

While a budget is important for planning and control, it does not have any special purpose in the purchasing process.

What are alternative names for the purchasing process?

Which of the following modules would you expect to find in the purchasing function?

Discuss two of the risks associated with the procurement of vendor goods and services.

Cash disbursements to vendors are recorded in the cash disbursements transaction file which is then used to update the open vendor invoice file and the vendor master file.

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?

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

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

Invoices for received items not yet paid are stored in the purchases transaction file.

Which of the following is NOT a reason why a company would be motivated to use an EDI system for purchase orders?

Identify and describe at least three principal reports required for effective management of the purchasing process.

What has replaced the traditional paper purchase order?

List two reports generated by the purchasing process and indicate what they are used for.

Which of the following control activities ensure that the hours worked by a contractor are valid?

When is purchasing initiated?

Where is there rarely a deficiency in the audit trail between?

Which of the following are actions that result from the receipt of a properly authorized purchase requisition?

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

Which of the following is effected through the Purchase Order module?

Retainages are commonly required for construction contractors.

What is a major source of purchasing errors?

While a budget is important for planning and control, it does not have any special purpose in the purchasing process.

What are alternative names for the purchasing process?

Which of the following modules would you expect to find in the purchasing function?

Discuss two of the risks associated with the procurement of vendor goods and services.

Cash disbursements to vendors are recorded in the cash disbursements transaction file which is then used to update the open vendor invoice file and the vendor master file.

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?

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

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

Invoices for received items not yet paid are stored in the purchases transaction file.

Which of the following is NOT a reason why a company would be motivated to use an EDI system for purchase orders?

Identify and describe at least three principal reports required for effective management of the purchasing process.

What has replaced the traditional paper purchase order?

List two reports generated by the purchasing process and indicate what they are used for.

Which of the following control activities ensure that the hours worked by a contractor are valid?

When is purchasing initiated?

Where is there rarely a deficiency in the audit trail between?

Which of the following are actions that result from the receipt of a properly authorized purchase requisition?

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