Question 1

List and explain the activities in the purchasing process.

Accepted Answer

<b>Procuring goods and vendor services.<

Question 2

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 3

What are the two major data entry processes?

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 4

Where are purchase order data stored?

Accepted Answer

A)  Completed purchase order file 
B)  Open invoice file 
C)  Inventory order file 
D)  Open purchase order file 
A)  Completed purchase order file 
B)  Open invoice file 
C)  Inventory order file 
D)  Open purchase order file

Question 5

What are some of the key reports required for effective management of the purchasing process?

Accepted Answer

Some key reports are the vendo

Question 6

What documents the receipt of goods?

Accepted Answer

A)  Receipt verification 
B)  Ticket 
C)  Purchase validation 
D)  Invoice 
A)  Receipt verification 
B)  Ticket 
C)  Purchase validation 
D)  Invoice

Question 7

Providing managers with budgets delegates authority to managers to spend up to a prescribed ceiling on goods and services related to their assigned responsibilities.

Accepted Answer

A) True 
 B)False

Question 8

Define electronic data interchange (EDI). List 3 of the advantages of implementing an EDI system.

Accepted Answer

EDI replaces the traditional paper purch

Question 9

Financial planners want an aging that monitors the expected timeliness of delivery while purchasing officers desire an aging that estimates future cash requirements.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is false?

Accepted Answer

A)  Payment for goods and services typically makes the largest demand on an organization's cash. 
B)  Most commonly, after a purchase order has been approved, a manager will then deal with vendors directly. 
C)  The order for goods and services has traditionally been in the form of a paper purchase order that is mailed to a vendor. 
D)  Purchasing personnel are responsible for periodically reviewing the file records and following up on unfilled orders. 
A)  Payment for goods and services typically makes the largest demand on an organization's cash. 
B)  Most commonly, after a purchase order has been approved, a manager will then deal with vendors directly. 
C)  The order for goods and services has traditionally been in the form of a paper purchase order that is mailed to a vendor. 
D)  Purchasing personnel are responsible for periodically reviewing the file records and following up on unfilled orders.

Question 11

Which of the following describes the best physical control(s) over cash disbursements?

Accepted Answer

A)  All disbursements to vendors over $50 are made with prenumbered checks. 
B)  Cash can be disbursed to vendors when approved by the purchasing manager. 
C)  Access to inventory is limited to authorized personnel only. 
D)  All of the above are good physical controls over cash disbursements. 
A)  All disbursements to vendors over $50 are made with prenumbered checks. 
B)  Cash can be disbursed to vendors when approved by the purchasing manager. 
C)  Access to inventory is limited to authorized personnel only. 
D)  All of the above are good physical controls over cash disbursements.

Question 12

What are listings of the cash disbursements transaction file are referred to?

Accepted Answer

A)  Accounts payable master file 
B)  Check register 
C)  Invoice register 
D)  Vendor master file 
A)  Accounts payable master file 
B)  Check register 
C)  Invoice register 
D)  Vendor master file

Question 13

Warehouse personnel are responsible for periodically reviewing the open purchase order file and following up on unfilled orders.

Accepted Answer

A) True 
 B)False

Question 14

Competitive bidding is a relatively uncomplicated procedure in that the lowest priced bidder that can meet the needs of the organization will be accepted.

Accepted Answer

A) True 
 B)False

Question 15

Rarely is there a deficiency in the audit trail between the cash disbursements journal and the vendor accounts since the check number is ordinarily used as a posting reference.

Accepted Answer

A) True 
 B)False

Question 16

An organization is not under an obligation to pay a vendor until the organization receives the vendor's invoice.

Accepted Answer

A) True 
 B)False

Question 17

The purchasing process normally includes purchase order processing, receiving, and accounts payable.

Accepted Answer

A) True 
 B)False

Question 18

For a purchase order system to be effective, it must be a real-time system.

Accepted Answer

A) True 
 B)False

Question 19

List four of the five actions that result from the receipt of merchandise from a vendor.

Accepted Answer

Physical count of shipment, create inven

Question 20

When do disbursement activities begin?

Accepted Answer

A)  Upon receipt of goods 
B)  After validation of receipt of goods 
C)  Upon approval of the invoice 
D)  After data has been keyed into the open invoice file 
A)  Upon receipt of goods 
B)  After validation of receipt of goods 
C)  Upon approval of the invoice 
D)  After data has been keyed into the open invoice file

List and explain the activities in the purchasing process.

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

What are the two major data entry processes?

Where are purchase order data stored?

What are some of the key reports required for effective management of the purchasing process?

What documents the receipt of goods?

Providing managers with budgets delegates authority to managers to spend up to a prescribed ceiling on goods and services related to their assigned responsibilities.

Define electronic data interchange (EDI). List 3 of the advantages of implementing an EDI system.

Financial planners want an aging that monitors the expected timeliness of delivery while purchasing officers desire an aging that estimates future cash requirements.

Which of the following statements is false?

Which of the following describes the best physical control(s) over cash disbursements?

What are listings of the cash disbursements transaction file are referred to?

Warehouse personnel are responsible for periodically reviewing the open purchase order file and following up on unfilled orders.

Competitive bidding is a relatively uncomplicated procedure in that the lowest priced bidder that can meet the needs of the organization will be accepted.

Rarely is there a deficiency in the audit trail between the cash disbursements journal and the vendor accounts since the check number is ordinarily used as a posting reference.

An organization is not under an obligation to pay a vendor until the organization receives the vendor's invoice.

The purchasing process normally includes purchase order processing, receiving, and accounts payable.

For a purchase order system to be effective, it must be a real-time system.

List four of the five actions that result from the receipt of merchandise from a vendor.

When do disbursement activities begin?

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

List and explain the activities in the purchasing process.

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

What are the two major data entry processes?

Where are purchase order data stored?

What are some of the key reports required for effective management of the purchasing process?

What documents the receipt of goods?

Providing managers with budgets delegates authority to managers to spend up to a prescribed ceiling on goods and services related to their assigned responsibilities.

Define electronic data interchange (EDI). List 3 of the advantages of implementing an EDI system.

Financial planners want an aging that monitors the expected timeliness of delivery while purchasing officers desire an aging that estimates future cash requirements.

Which of the following statements is false?

Which of the following describes the best physical control(s) over cash disbursements?

What are listings of the cash disbursements transaction file are referred to?

Warehouse personnel are responsible for periodically reviewing the open purchase order file and following up on unfilled orders.

Competitive bidding is a relatively uncomplicated procedure in that the lowest priced bidder that can meet the needs of the organization will be accepted.

Rarely is there a deficiency in the audit trail between the cash disbursements journal and the vendor accounts since the check number is ordinarily used as a posting reference.

An organization is not under an obligation to pay a vendor until the organization receives the vendor's invoice.

The purchasing process normally includes purchase order processing, receiving, and accounts payable.

For a purchase order system to be effective, it must be a real-time system.

List four of the five actions that result from the receipt of merchandise from a vendor.

When do disbursement activities begin?

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