Question 1

The accounts payable clerk is responsible for updating the AP Control accounts to reflect each vendor liability.

Accepted Answer

A) True 
 B)False  False

Question 2

Describe four tasks the receiving computer application performs automatically in the integrated purchases processing system.

Accepted Answer

1. A record is added to the receiving report file.
2. Quantities of items received are matched against the open PO record, and the PO is closed by placing the receiving report number in the PO closed flag.
3. The inventory subsidiary records are updated to reflect the receipt of the inventory items.
4. The general ledger inventory control account is updated.

Question 3

Inventory control should be located in the warehouse.

Accepted Answer

A) True 
 B)False  False

Question 4

When a copy of the receiving report arrives in the purchasing department, it is used to

Accepted Answer

A)  adjust perpetual inventory records 
B)  record the physical transfer of inventory from receiving to the warehouse 
C)  analyze the receiving department's process 
D)  recognize the purchase order as closed 
A)  adjust perpetual inventory records 
B)  record the physical transfer of inventory from receiving to the warehouse 
C)  analyze the receiving department's process 
D)  recognize the purchase order as closed

Question 5

Which internally generated document should be compared to the supplier's invoice to verify the quantity being billed for?

Accepted Answer

The answer of Which internally generated document should be compared...

Question 6

In merchandising firms, purchasing decisions are authorized by inventory control.

Accepted Answer

A) True 
 B)False

Question 7

The cash disbursement function is

Accepted Answer

A)  part of accounts payable 
B)  an independent accounting function 
C)  a treasury function 
D)  part of the general ledger department 
A)  part of accounts payable 
B)  an independent accounting function 
C)  a treasury function 
D)  part of the general ledger department

Question 8

Which of the following is NOT a control over the risk of unauthorized inventory purchases?

Accepted Answer

A)  Transaction authorization 
B)  Automated purchase approval 
C)  Scanner technology 
D)  All of the above are controls over the risk of unauthorized inventory purchases. 
A)  Transaction authorization 
B)  Automated purchase approval 
C)  Scanner technology 
D)  All of the above are controls over the risk of unauthorized inventory purchases.

Question 9

In regards to the accounts payable department, which statement is NOT true?

Accepted Answer

A)  The purchase requisition shows that the transaction was authorized. 
B)  The purchase order proves that the purchase was required. 
C)  The receiving report provides evidence of the physical receipt of the goods. 
D)  The supplier's invoice indicates the financial value of the transaction. 
A)  The purchase requisition shows that the transaction was authorized. 
B)  The purchase order proves that the purchase was required. 
C)  The receiving report provides evidence of the physical receipt of the goods. 
D)  The supplier's invoice indicates the financial value of the transaction.

Question 10

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

Accepted Answer

The receiving department clerk receives

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Copies of a purchase order are sent to all of the following except

Accepted Answer

A)  inventory control 
B)  receiving 
C)  general ledger 
D)  accounts payable 
A)  inventory control 
B)  receiving 
C)  general ledger 
D)  accounts payable

Question 13

What are some of the risks of placing the decision of what, when and where to buy solely at the discretion of the purchasing agent?

Accepted Answer

The result can be excessive inventory fo

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

What is the purpose of the supplier's invoice?

Accepted Answer

The supplier's invoice triggers the thre

Question 17

What are the major differences between a basic technology purchasing system and an integrated purchases processing system?

Accepted Answer

The level of departmental activity is si

Question 18

What documents are involved in a three-way match and what role does each play in this control?

Accepted Answer

1. The PO, which shows that the purchasi

Question 19

In a voucher system, the sum of all unpaid vouchers in the voucher register equals the firm's total voucher payable balance.

Accepted Answer

A) True 
 B)False

Question 20

Name the key tasks associated with purchases procedures.

Accepted Answer

Purchases procedures include t

The accounts payable clerk is responsible for updating the AP Control accounts to reflect each vendor liability.

Describe four tasks the receiving computer application performs automatically in the integrated purchases processing system.

Inventory control should be located in the warehouse.

When a copy of the receiving report arrives in the purchasing department, it is used to

Which internally generated document should be compared to the supplier's invoice to verify the quantity being billed for?

In merchandising firms, purchasing decisions are authorized by inventory control.

The cash disbursement function is

Which of the following is NOT a control over the risk of unauthorized inventory purchases?

In regards to the accounts payable department, which statement is NOT true?

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

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

Copies of a purchase order are sent to all of the following except

What are some of the risks of placing the decision of what, when and where to buy solely at the discretion of the purchasing agent?

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

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

What is the purpose of the supplier's invoice?

What are the major differences between a basic technology purchasing system and an integrated purchases processing system?

What documents are involved in a three-way match and what role does each play in this control?

In a voucher system, the sum of all unpaid vouchers in the voucher register equals the firm's total voucher payable balance.

Name the key tasks associated with purchases procedures.

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

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

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

The accounts payable clerk is responsible for updating the AP Control accounts to reflect each vendor liability.

Describe four tasks the receiving computer application performs automatically in the integrated purchases processing system.

Inventory control should be located in the warehouse.

When a copy of the receiving report arrives in the purchasing department, it is used to

Which internally generated document should be compared to the supplier's invoice to verify the quantity being billed for?

In merchandising firms, purchasing decisions are authorized by inventory control.

The cash disbursement function is

Which of the following is NOT a control over the risk of unauthorized inventory purchases?

In regards to the accounts payable department, which statement is NOT true?

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

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

Copies of a purchase order are sent to all of the following except

What are some of the risks of placing the decision of what, when and where to buy solely at the discretion of the purchasing agent?

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

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

What is the purpose of the supplier's invoice?

What are the major differences between a basic technology purchasing system and an integrated purchases processing system?

What documents are involved in a three-way match and what role does each play in this control?

In a voucher system, the sum of all unpaid vouchers in the voucher register equals the firm's total voucher payable balance.

Name the key tasks associated with purchases procedures.

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

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