Exam 11: Acquestion Payment Process

Hall's Office Supplies is a small store in a rural area of the United States; Ian Hall is the owner. The store also employs three purchasing agents and an accountant. While the purchasing agents handle day-to-day inventory purchases, Ian makes all large purchases (equipment, furniture and computers, for example) himself. Each purchasing agent is responsible for purchasing a specific group of inventory items; for example, one purchasing agent handles all purchases of computer-related supplies (mouse pads, compact discs). Each purchasing agent uses his/her best judgment when deciding how much and how often to order inventory items. When inventory and other items arrive at the store, the relevant purchasing agent checks it in and puts it in the stockroom. Vendors send invoices directly to the accountant, who pays them within thirty days and reconciles the bank statement at least monthly. Ian works as a salesperson Monday through Friday from 8 a.m. to 5 p.m.; he is assisted by two half-time sales staff. One staff person works from 8 a.m. to 12 noon, while the other works from 1 p.m. to 5 p.m. The part-time staff is in charge of keeping the shelves stocked. Hall's Office Supplies maintains a manual accounting information system, and retains copies of all documents for one year. -Which of the following symbols would least likely appear in a flowchart of Hall's acquisition/payment process?

In the acquisition/payment process, bar coding can be most effectively used to:

Step Five in the acquisition/payment process outlined in the text is completed by the ___A. Accounting.

Richard wants to create a report that shows unpaid vendor invoices; he wants to organize the report by invoice date. Which form(s) of information technology could he use: (i) relational database, (ii) spreadsheet, (iii) general ledger?

A manager wants to develop a relational database to achieve stronger internal control in the acquisition/payment process. Which of the following would help the manager achieve that goal: (i) automatically numbering all purchase orders, (ii) requiring sales staff to enter a password before accessing the purchases table?

Hall's Office Supplies is a small store in a rural area of the United States; Ian Hall is the owner. The store also employs three purchasing agents and an accountant. While the purchasing agents handle day-to-day inventory purchases, Ian makes all large purchases (equipment, furniture and computers, for example) himself. Each purchasing agent is responsible for purchasing a specific group of inventory items; for example, one purchasing agent handles all purchases of computer-related supplies (mouse pads, compact discs). Each purchasing agent uses his/her best judgment when deciding how much and how often to order inventory items. When inventory and other items arrive at the store, the relevant purchasing agent checks it in and puts it in the stockroom. Vendors send invoices directly to the accountant, who pays them within thirty days and reconciles the bank statement at least monthly. Ian works as a salesperson Monday through Friday from 8 a.m. to 5 p.m.; he is assisted by two half-time sales staff. One staff person works from 8 a.m. to 12 noon, while the other works from 1 p.m. to 5 p.m. The part-time staff is in charge of keeping the shelves stocked. Hall's Office Supplies maintains a manual accounting information system, and retains copies of all documents for one year. -Which flowchart types would be useful for Hall's Office Supplies: (i) systems, (ii) document, (iii) hardware?

-In the partial data flow diagram above, symbol "A" could represent:

-In the partial data flow diagram above, symbol "C" is least likely to be labeled:

In a well organized acquisition/payment process, the purchasing department handles: (i) purchase orders, (ii) purchase requisitions, (iii) vendor invoices.

The A. Gary Anderson Graduate School of Management (AGSM) at the University of California, Riverside periodically needs to hire part-time faculty for certain courses. The department chair of Accounting and Information Systems identifies the courses each term, and sends an e-mail to other local universities. Candidates respond to the e-mail, indicating which course(s) they are qualified and available to teach. The department faculty evaluate each candidate and decide which candidates will teach which courses. At that point, AGSM's clerical staff requests the following information: resume, degree transcripts and student evaluations for the last year. Once those items are received, AGSM sends each part-time faculty member a hiring packet; the faculty member fills out the hiring packet, which includes various personnel, tax and payroll forms, and brings the completed packet to AGSM. The newly-hired faculty member is assigned an office and teaches the class as scheduled. AGSM staff process payroll once a month; faculty can have their salary deposited electronically in the bank or pick up a paper check on the first of the month. Create a systems flowchart or Level Zero data flow diagram of the preceding process.

Rochelle was a new employee at CPP Corporation. To her dismay, she arrived in her office to find no furniture, no telephone and no computer. When she asked her supervisor what had happened, he said: "The purchasing department must not have processed the necessary paperwork. We'll correct the problem and get you everything you need within two working days." The supervisor then called the purchasing department manager and reviewed the data flow diagram of the process shown below. -Write a narrative explanation of CPP's acquisition/payment process based on the data flow diagram above. Then, identify at least two specific ways the process could be improved, whether CPP decides to use information technology or not.

In the acquisition/payment process, spreadsheet software would be least effective for:

Database design for the acquisition/payment process Specify the fields that should be included in a database table for each item listed below; underline primary keys and [bracket] foreign keys. Some cells in the table may be left blank. Inventory table Disburse cash table Purchase / inventory table

The document that requests the purchasing department order goods from a vendor is:

The receiving department is most closely associated with which step in the acquisition/payment process?

Rochelle was a new employee at CPP Corporation. To her dismay, she arrived in her office to find no furniture, no telephone and no computer. When she asked her supervisor what had happened, he said: "The purchasing department must not have processed the necessary paperwork. We'll correct the problem and get you everything you need within two working days." The supervisor then called the purchasing department manager and reviewed the data flow diagram of the process shown below. -Identify three documents CPP Corporation should use in its acquisition/payment process. Explain the purpose of each document.

In the acquisition/payment process, general ledger software can strengthen internal control by:

Hall's Office Supplies is a small store in a rural area of the United States; Ian Hall is the owner. The store also employs three purchasing agents and an accountant. While the purchasing agents handle day-to-day inventory purchases, Ian makes all large purchases (equipment, furniture and computers, for example) himself. Each purchasing agent is responsible for purchasing a specific group of inventory items; for example, one purchasing agent handles all purchases of computer-related supplies (mouse pads, compact discs). Each purchasing agent uses his/her best judgment when deciding how much and how often to order inventory items. When inventory and other items arrive at the store, the relevant purchasing agent checks it in and puts it in the stockroom. Vendors send invoices directly to the accountant, who pays them within thirty days and reconciles the bank statement at least monthly. Ian works as a salesperson Monday through Friday from 8 a.m. to 5 p.m.; he is assisted by two half-time sales staff. One staff person works from 8 a.m. to 12 noon, while the other works from 1 p.m. to 5 p.m. The part-time staff is in charge of keeping the shelves stocked. Hall's Office Supplies maintains a manual accounting information system, and retains copies of all documents for one year. -Information technology can serve as an important form of internal control. Which of the following forms of information technology will ensure that Hall's Office Supplies has strong internal control: (i) general ledger software, (ii) relational database software?

Which of the following best explains the difference between a purchase order and a purchase requisition?