Question 1

What are the steps taken in the cash disbursement system?

Accepted Answer

Accounts payable reviews the documents related to a liability: purchase requisition,purchase order,receiving report,and vendor invoice.If proper,cash disbursements is authorized to make payment. Cash disbursements prepares the check,a separate person signs it,sends it to the vendor,and notifies accounts payable. At the end of the period,cash disbursements and accounts payable send summary information to general ledger.

Question 2

Why should the copy of a purchase order,which is sent to receiving,be a "blind" copy?

Accepted Answer

to force workers in receiving to count and inspect the goods received

Question 3

Describe an internal control procedure that would prevent issuing two checks in payment of the same invoice.

Accepted Answer

The supporting documents should be marked "paid" after the check is signed.A computerized system will tag the invoice number as paid.

Question 4

An automated cash disbursements system can yield better cash management since payments are made on time.

Accepted Answer

A) True 
 B)False

Question 5

One reason for authorizing purchases is to enable efficient inventory management.

Accepted Answer

A) True 
 B)False

Question 6

What is the purpose of the purchase requisition?

Accepted Answer

When inventories drop to a predetermined

Question 7

Identify at least three advanced technology expenditure cycle control issues that are specific to the advanced technology expenditure system.

Accepted Answer

Automated purchase approval. A

Question 8

What is the purpose of the suppliers invoice?

Accepted Answer

The suppliers invoice triggers the three

Question 9

Authorization for payment of an accounts payable liability is the responsibility of

Accepted Answer

A)  inventory control 
B)  purchasing 
C)  accounts payable 
D)  cash disbursements 
A)  inventory control 
B)  purchasing 
C)  accounts payable 
D)  cash disbursements

Question 10

A purchasing system that employs electronic data interchange does not use a purchase order.

Accepted Answer

A) True 
 B)False

Question 11

In a merchandising firm,authorization for the payment of inventory is the responsibility of

Accepted Answer

A)  inventory control 
B)  purchasing 
C)  accounts payable 
D)  cash disbursements 
A)  inventory control 
B)  purchasing 
C)  accounts payable 
D)  cash disbursements

Question 12

Why do companies devote resources to a purchasing department? Could not individual departments make their own purchases more efficiently?

Accepted Answer

The purchasing function is extremely imp

Question 13

List specific jobs that should be segregated in the purchases processing system.

Accepted Answer

inventory control fr

Question 14

How does a voucher payable system work? What documents are reconciled? Who prepares the voucher? How is the A/P balance determined? How does the voucher payable system improve control over cash?

Accepted Answer

In place of a standard accounts payable

Question 15

The documents in a voucher packet include all of the following except

Accepted Answer

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

Question 16

Outline the key steps taken in the purchasing system?

Accepted Answer

Inventory control monitors inventory and

Question 17

What general ledger journal entries are triggered by the purchases system? From which departments do these journal entries arise?

Accepted Answer

None

Question 18

The cash disbursement clerk performs all of the following tasks except

Accepted Answer

A)  reviews the supporting documents for completeness and accuracy 
B)  prepares checks 
C)  signs checks 
D)  marks the supporting documents paid 
A)  reviews the supporting documents for completeness and accuracy 
B)  prepares checks 
C)  signs checks 
D)  marks the supporting documents paid

Question 19

Describe two areas where segregation of duties is important in the expenditure cycle..

Accepted Answer

-SEGREGATION OF INVENTORY CONTROL FROM T

Question 20

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

Accepted Answer

A) True 
 B)False

What are the steps taken in the cash disbursement system?

Why should the copy of a purchase order,which is sent to receiving,be a "blind" copy?

Describe an internal control procedure that would prevent issuing two checks in payment of the same invoice.

An automated cash disbursements system can yield better cash management since payments are made on time.

One reason for authorizing purchases is to enable efficient inventory management.

What is the purpose of the purchase requisition?

Identify at least three advanced technology expenditure cycle control issues that are specific to the advanced technology expenditure system.

What is the purpose of the suppliers invoice?

Authorization for payment of an accounts payable liability is the responsibility of

A purchasing system that employs electronic data interchange does not use a purchase order.

In a merchandising firm,authorization for the payment of inventory is the responsibility of

Why do companies devote resources to a purchasing department? Could not individual departments make their own purchases more efficiently?

List specific jobs that should be segregated in the purchases processing system.

How does a voucher payable system work? What documents are reconciled? Who prepares the voucher? How is the A/P balance determined? How does the voucher payable system improve control over cash?

The documents in a voucher packet include all of the following except

Outline the key steps taken in the purchasing system?

What general ledger journal entries are triggered by the purchases system? From which departments do these journal entries arise?

The cash disbursement clerk performs all of the following tasks except

Describe two areas where segregation of duties is important in the expenditure cycle..

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

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

General Ledger,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

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

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

What are the steps taken in the cash disbursement system?

Why should the copy of a purchase order,which is sent to receiving,be a "blind" copy?

Describe an internal control procedure that would prevent issuing two checks in payment of the same invoice.

An automated cash disbursements system can yield better cash management since payments are made on time.

One reason for authorizing purchases is to enable efficient inventory management.

What is the purpose of the purchase requisition?

Identify at least three advanced technology expenditure cycle control issues that are specific to the advanced technology expenditure system.

What is the purpose of the suppliers invoice?

Authorization for payment of an accounts payable liability is the responsibility of

A purchasing system that employs electronic data interchange does not use a purchase order.

In a merchandising firm,authorization for the payment of inventory is the responsibility of

Why do companies devote resources to a purchasing department? Could not individual departments make their own purchases more efficiently?

List specific jobs that should be segregated in the purchases processing system.

How does a voucher payable system work? What documents are reconciled? Who prepares the voucher? How is the A/P balance determined? How does the voucher payable system improve control over cash?

The documents in a voucher packet include all of the following except

Outline the key steps taken in the purchasing system?

What general ledger journal entries are triggered by the purchases system? From which departments do these journal entries arise?

The cash disbursement clerk performs all of the following tasks except

Describe two areas where segregation of duties is important in the expenditure cycle..

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

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

General Ledger,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

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters