Question 1

A three way match involves a purchase order, a purchase requisition, and an invoice.

Accepted Answer

A) True 
 B)False

Question 2

What is the purpose of a receiving report? How are copies of the report distributed?

Accepted Answer

Upon completion of the physical count an

Question 3

The blind copy of the purchase order that goes to the receiving department contains no item descriptions.

Accepted Answer

A) True 
 B)False

Question 4

If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

Accepted Answer

A) True 
 B)False

Question 5

Discuss the steps taken in the purchasing department in a basic technology expenditure cycle.

Accepted Answer

The purchasing department receives purch

Question 6

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

Accepted Answer

A firm must limit access to do

Question 7

Which of the following tasks is NOT performed by the cash disbursement clerk?

Accepted Answer

A)  Review the supporting documents for completeness and accuracy. 
B)  Prepare checks. 
C)  Sign checks. 
D)  Mark the supporting documents paid. 
A)  Review the supporting documents for completeness and accuracy. 
B)  Prepare checks. 
C)  Sign checks. 
D)  Mark the supporting documents paid.

Question 8

Authorization of purchases in a merchandising firm occurs in the inventory control department.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

1. The system reads the purchases requis

Question 10

Which internally generated document should be compared to the supplier's invoice to verify the price of an item?

Accepted Answer

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

Question 11

The level of departmental activity is higher with an integrated purchases processing system than it is with a basic technology system.

Accepted Answer

A) True 
 B)False

Question 12

The receiving department is not responsible to

Accepted Answer

A)  inspect shipments received 
B)  count items received from vendors 
C)  order goods from vendors 
D)  safeguard goods until they are transferred to the warehouse 
A)  inspect shipments received 
B)  count items received from vendors 
C)  order goods from vendors 
D)  safeguard goods until they are transferred to the warehouse

Question 13

Of the following duties, it is most important to separate

Accepted Answer

A)  warehouse from stores 
B)  warehouse from inventory control 
C)  accounts payable and accounts receivable 
D)  purchasing and accounts receivable 
A)  warehouse from stores 
B)  warehouse from inventory control 
C)  accounts payable and accounts receivable 
D)  purchasing and accounts receivable

Question 14

To maintain a good credit rating and to optimize cash management, cash disbursements should arrive at the vendor's place of business

Accepted Answer

A)  as soon as possible 
B)  on the due date 
C)  on the discount date 
D)  by the end of the month 
A)  as soon as possible 
B)  on the due date 
C)  on the discount date 
D)  by the end of the month

Question 15

All of the following departments have a copy of the purchase order except

Accepted Answer

A)  the purchasing department 
B)  the receiving department 
C)  accounts payable 
D)  general ledger 
A)  the purchasing department 
B)  the receiving department 
C)  accounts payable 
D)  general ledger

Question 16

What is the principle objective of the cash disbursement system?

Accepted Answer

The principal objective of this system i

Question 17

Assuming the organization uses the perpetual inventory method, what general ledger journal entries are triggered by the purchases system? From which departments do these journal entries arise?

Accepted Answer

(Accounts Payable)
Inventory C

Question 18

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 19

The accounts payable department reconciles the accounts payable subsidiary ledger to the control account.

Accepted Answer

A) True 
 B)False

Question 20

Explain how a voucher payable system works. How is the balance of AP determined?

Accepted Answer

In place of a standard accounts payable

A three way match involves a purchase order, a purchase requisition, and an invoice.

What is the purpose of a receiving report? How are copies of the report distributed?

The blind copy of the purchase order that goes to the receiving department contains no item descriptions.

If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

Discuss the steps taken in the purchasing department in a basic technology expenditure cycle.

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

Which of the following tasks is NOT performed by the cash disbursement clerk?

Authorization of purchases in a merchandising firm occurs in the inventory control department.

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

Which internally generated document should be compared to the supplier's invoice to verify the price of an item?

The level of departmental activity is higher with an integrated purchases processing system than it is with a basic technology system.

The receiving department is not responsible to

Of the following duties, it is most important to separate

To maintain a good credit rating and to optimize cash management, cash disbursements should arrive at the vendor's place of business

All of the following departments have a copy of the purchase order except

What is the principle objective of the cash disbursement system?

Assuming the organization uses the perpetual inventory method, what general ledger journal entries are triggered by the purchases system? From which departments do these journal entries arise?

The purpose of the purchase order is to

The accounts payable department reconciles the accounts payable subsidiary ledger to the control account.

Explain how a voucher payable system works. How is the balance of AP determined?

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

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

A three way match involves a purchase order, a purchase requisition, and an invoice.

What is the purpose of a receiving report? How are copies of the report distributed?

The blind copy of the purchase order that goes to the receiving department contains no item descriptions.

If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

Discuss the steps taken in the purchasing department in a basic technology expenditure cycle.

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

Which of the following tasks is NOT performed by the cash disbursement clerk?

Authorization of purchases in a merchandising firm occurs in the inventory control department.

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

Which internally generated document should be compared to the supplier's invoice to verify the price of an item?

The level of departmental activity is higher with an integrated purchases processing system than it is with a basic technology system.

The receiving department is not responsible to

Of the following duties, it is most important to separate

To maintain a good credit rating and to optimize cash management, cash disbursements should arrive at the vendor's place of business

All of the following departments have a copy of the purchase order except

What is the principle objective of the cash disbursement system?

Assuming the organization uses the perpetual inventory method, what general ledger journal entries are triggered by the purchases system? From which departments do these journal entries arise?

The purpose of the purchase order is to

The accounts payable department reconciles the accounts payable subsidiary ledger to the control account.

Explain how a voucher payable system works. How is the balance of AP determined?

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