Question 1

The receiving report is prepared by the vendor to provide evidence that the purchase order was received.

Accepted Answer

A) True 
 B)False

Question 2

The use of inventory reorder points suggests the need to obtain proper authorization.

Accepted Answer

A) True 
 B)False

Question 3

Proper segregation of duties requires that the responsibility for approving a payment be separated from posting to the cash disbursements journal.

Accepted Answer

A) True 
 B)False

Question 4

Firms can expect that proper use of a valid vendor file will result in all of the following benefits except

Accepted Answer

A) Purchases from unapproved vendors will be prevented. 
B) Purchases from fictitious vendors will be detected. 
C) The most competitive price will be obtained. 
D) The risk of purchasing agents receiving kickbacks and bribes will be reduced. 
A) Purchases from unapproved vendors will be prevented. 
B) Purchases from fictitious vendors will be detected. 
C) The most competitive price will be obtained. 
D) The risk of purchasing agents receiving kickbacks and bribes will be reduced.

Question 5

Describe an internal control procedure that would prevent payment of an invoice for goods that were never delivered.

Accepted Answer

Accounts payable clerk should

Question 6

What is an AP packet?

Accepted Answer

The AP packet consists of the

Question 7

The purpose of the purchase order is to

Accepted Answer

A) order goods from vendors 
B) record receipt of goods from vendors 
C) authorize the purchasing department to order goods 
D) approve payment for goods received 
A) order goods from vendors 
B) record receipt of goods from vendors 
C) authorize the purchasing department to order goods 
D) approve payment for goods received

Question 8

When goods are received,the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.

Accepted Answer

A) True 
 B)False

Question 9

An objective of segregation of duties is to structure the organization so that the perpetration of a fraud requires collusion between two or more individuals.What must a company do to achieve this objective? Why?

Accepted Answer

Certain record-keeping tasks-subsidiary

Question 10

Firms that wish to improve control over cash disbursements use a voucher system.

Accepted Answer

A) True 
 B)False

Question 11

The check digit control will provide control over accessing the wrong accounts.

Accepted Answer

A) True 
 B)False

Question 12

Supervision in receiving is intended to reduce the theft of assets.

Accepted Answer

A) True 
 B)False

Question 13

What is the purpose of the supplier's invoice?

Accepted Answer

The supplier's invoice triggers the thre

Question 14

The receiving report is used to

Accepted Answer

A) accompany physical inventories to the storeroom or warehouse 
B) advise the purchasing department of the dollar value of the goods delivered 
C) advise general ledger of the accounting entry to be made 
D) advise the vendor that the goods arrived safely 
A) accompany physical inventories to the storeroom or warehouse 
B) advise the purchasing department of the dollar value of the goods delivered 
C) advise general ledger of the accounting entry to be made 
D) advise the vendor that the goods arrived safely

Question 15

Which of the following statements is not correct?

Accepted Answer

A) The voucher system is used to improve control over cash disbursements. 
B) The sum of the paid vouchers represents the voucher payable liability of the firm. 
C) The voucher system permits the firm to consolidate payments of several invoices on one voucher. 
D) Many firms replace accounts payable with a voucher payable system. 
A) The voucher system is used to improve control over cash disbursements. 
B) The sum of the paid vouchers represents the voucher payable liability of the firm. 
C) The voucher system permits the firm to consolidate payments of several invoices on one voucher. 
D) Many firms replace accounts payable with a voucher payable system.

Question 16

Authorization for a cash disbursement occurs in the cash disbursement department upon receipt of the supplier's invoice.

Accepted Answer

A) True 
 B)False

Question 17

Where is access control exercised in the purchasing/cash disbursement functions?

Accepted Answer

A firm must limit access to do

Question 18

When purchasing inventory,which document usually triggers the recording of a liability?

Accepted Answer

A) purchase requisition 
B) purchase order 
C) receiving report 
D) supplier's invoice 
A) purchase requisition 
B) purchase order 
C) receiving report 
D) supplier's invoice

Question 19

What is the principle objective of the cash disbursement system?

Accepted Answer

The principal objective of this system i

Question 20

What are steps taken in the receiving department under a basic technology expenditure cycle?

Accepted Answer

The receiving department clerk receives

The receiving report is prepared by the vendor to provide evidence that the purchase order was received.

The use of inventory reorder points suggests the need to obtain proper authorization.

Proper segregation of duties requires that the responsibility for approving a payment be separated from posting to the cash disbursements journal.

Firms can expect that proper use of a valid vendor file will result in all of the following benefits except

Describe an internal control procedure that would prevent payment of an invoice for goods that were never delivered.

What is an AP packet?

The purpose of the purchase order is to

When goods are received,the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.

An objective of segregation of duties is to structure the organization so that the perpetration of a fraud requires collusion between two or more individuals.What must a company do to achieve this objective? Why?

Firms that wish to improve control over cash disbursements use a voucher system.

The check digit control will provide control over accessing the wrong accounts.

Supervision in receiving is intended to reduce the theft of assets.

What is the purpose of the supplier's invoice?

The receiving report is used to

Which of the following statements is not correct?

Authorization for a cash disbursement occurs in the cash disbursement department upon receipt of the supplier's invoice.

Where is access control exercised in the purchasing/cash disbursement functions?

When purchasing inventory,which document usually triggers the recording of a liability?

What is the principle objective of the cash disbursement system?

What are steps taken in the receiving department under a basic technology expenditure cycle?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

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Exam 5: The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The receiving report is prepared by the vendor to provide evidence that the purchase order was received.

The use of inventory reorder points suggests the need to obtain proper authorization.

Proper segregation of duties requires that the responsibility for approving a payment be separated from posting to the cash disbursements journal.

Firms can expect that proper use of a valid vendor file will result in all of the following benefits except

Describe an internal control procedure that would prevent payment of an invoice for goods that were never delivered.

What is an AP packet?

The purpose of the purchase order is to

When goods are received,the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.

An objective of segregation of duties is to structure the organization so that the perpetration of a fraud requires collusion between two or more individuals.What must a company do to achieve this objective? Why?

Firms that wish to improve control over cash disbursements use a voucher system.

The check digit control will provide control over accessing the wrong accounts.

Supervision in receiving is intended to reduce the theft of assets.

What is the purpose of the supplier's invoice?

The receiving report is used to

Which of the following statements is not correct?

Authorization for a cash disbursement occurs in the cash disbursement department upon receipt of the supplier's invoice.

Where is access control exercised in the purchasing/cash disbursement functions?

When purchasing inventory,which document usually triggers the recording of a liability?

What is the principle objective of the cash disbursement system?

What are steps taken in the receiving department under a basic technology expenditure cycle?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

Filters