Question 1

A control plan that helps ensure the security of resources within the AP/CD process is:

Accepted Answer

A) requisition confirmation to originating department 
B) approve vendor selection 
C) independent validation of vendor invoice 
D) independent authorization to make payment 
A) requisition confirmation to originating department 
B) approve vendor selection 
C) independent validation of vendor invoice 
D) independent authorization to make payment

Question 2

The Level 0 diagram of the AP/CD Process contains the two process bubbles of ______________________________ and ______________________________.

Accepted Answer

establish

Question 3

An organization should ___________________________________ by matching records of cash disbursements to bank records to ensure that all disbursements actually made by the bank were authorized and accurate.

Accepted Answer

reconcile

Question 4

Below is a narrative for the "Make payment" portion (bubble 2.0) of the accounts payable/cash disbursements process described in Chapter 13.Narrative Description
The payment process begins with the preparation of a list of payments that might be made at this time (bubble 2.1).The selection of items for this list is based on payment due dates and terms that may indicate a discount can be taken for a payment at this time.The proposed list is reviewed and amended (bubble 2.2) to add additional invoices that are not due for payment yet but that can be consolidated with other payments being made to a vendor.Proposed payments may be removed from the list if there are insufficient funds or if payments to a vendor are on hold.Bubble 2.3 depicts the process of preparing the disbursement, which is equal to the amount of the invoice less any discount taken.The payment is recorded by:
-Marking the invoice as paid on the accounts payable master data.-Making an entry in the cash disbursements event data store.-Sending payment data to the general ledger where an entry is made to reflect the payment.Required: From the DFD (TB Figure 13.7) and the narrative description above, explode bubble 2.0 into a lower-level diagram showing the details of that process by identifying the words that belong in items 1.to 9.(TB Figure 13.8).

Accepted Answer

1.2.1 Prepare proposed payments 
6.Cash

Question 5

An exception routine is usually performed for:

Accepted Answer

A) processing payments 
B) vendor invoice identification 
C) purchase returns and allowances 
D) general ledger updates 
A) processing payments 
B) vendor invoice identification 
C) purchase returns and allowances 
D) general ledger updates

Question 6

Input validity for ______________________________ is ensured by making sure that those that bill the company are doing so for goods that were actually ordered and actually received.

Accepted Answer

The answer of Input validity for ______________________________ is ensured by...

Question 7

In a relational table for VALID_INVOICES, the primary key would be the ______________________________.

Accepted Answer

The answer of In a relational table for VALID_INVOICES, the...

Question 8

Which of the following statements regarding evaluated receipt settlement (ERS) is false?

Accepted Answer

A) ERS is a system by which an organization pays for a purchase on the basis of the goods goods receipt. 
B) ERS can reduce the costs associated with entering invoices, matching the invoice with the PO and receiving report, and resolving discrepancies between the invoice and the PO and goods receipt. 
C) ERS arrangements are only made with vendors who have proven e-payment records. 
D) Upon receipt of the goods, the AP/CD system compares the received quantity to the open purchase quantity and, if appropriate, makes a payment based on the price and terms on the PO. 
A) ERS is a system by which an organization pays for a purchase on the basis of the goods goods receipt. 
B) ERS can reduce the costs associated with entering invoices, matching the invoice with the PO and receiving report, and resolving discrepancies between the invoice and the PO and goods receipt. 
C) ERS arrangements are only made with vendors who have proven e-payment records. 
D) Upon receipt of the goods, the AP/CD system compares the received quantity to the open purchase quantity and, if appropriate, makes a payment based on the price and terms on the PO.

Question 9

To ensure that a vendor invoice is recorded accurately and that items on the invoice were ordered and received requires that we __________________________________________________.

Accepted Answer

match invoice with p

Question 10

At the time that an AP/CD process makes payment for goods or services, the process generally follows which order.

Accepted Answer

A) select and record payments, prepare proposed payments, issue and record disbursements 
B) prepare proposed payments, issue and record disbursements, select and record payments 
C) issue and record disbursements, select and record payments, prepare proposed payments 
D) prepare proposed payments, select and record payments, issue and record disbursements 
A) select and record payments, prepare proposed payments, issue and record disbursements 
B) prepare proposed payments, issue and record disbursements, select and record payments 
C) issue and record disbursements, select and record payments, prepare proposed payments 
D) prepare proposed payments, select and record payments, issue and record disbursements

Question 11

The Level 0 diagram of the AP/CD Process contains the two process bubbles: Establish payable and Approve checks.

Accepted Answer

A) True 
 B)False

Question 12

In the ER diagram for AP/CD process, PURCHASE_REQUISITIONS generate PURCHASE_ORDERS.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following process bubbles would you not expect to see in the logical DFD for an AP/CD process?

Accepted Answer

A) requisition inventory 
B) establish payable 
C) make payment 
D) all of these are process bubbles 
A) requisition inventory 
B) establish payable 
C) make payment 
D) all of these are process bubbles

Question 14

The cashier usually reports to the controller.

Accepted Answer

A) True 
 B)False

Question 15

A company using a database approach to data management might not maintain a relational table for ACCOUNTS PAYABLE.Rather, accounts payable balances at any point in time could be computed as the difference between the relations for which of the following continuous events?

Accepted Answer

A) PURCHASE_ORDERS and INVENTORY_RECEIPTS 
B) INVENTORY and INVENTORY_RECEIPTS 
C) VALID_ INVOICES and INVENTORY_RECEIPTS 
D) VALID_ INVOICES and CASH_DISBURSEMENTS 
A) PURCHASE_ORDERS and INVENTORY_RECEIPTS 
B) INVENTORY and INVENTORY_RECEIPTS 
C) VALID_ INVOICES and INVENTORY_RECEIPTS 
D) VALID_ INVOICES and CASH_DISBURSEMENTS

Question 16

In an AP/CD process, a process "make payment" normally would be triggered by the data flow:

Accepted Answer

A) purchase order 
B) vendor acknowledgment 
C) vendor packing slip 
D) payment due date information 
A) purchase order 
B) vendor acknowledgment 
C) vendor packing slip 
D) payment due date information

Question 17

In the Level 0 DFD for an AP/CD, a data flow called "receiving report" most likely would be sent by the purchasing process to which of the following processes?

Accepted Answer

A) order inventory 
B) receive goods and services 
C) establish payable 
D) make payment 
A) order inventory 
B) receive goods and services 
C) establish payable 
D) make payment

Question 18

What factor has caused an escalation of check forgeries in recent years?

Accepted Answer

A) the increased use of EDI 
B) the availability of cheap color printers 
C) a lack of control plans to control automated funds transfer 
D) a repeal of severe civil and criminal penalties for such crimes 
A) the increased use of EDI 
B) the availability of cheap color printers 
C) a lack of control plans to control automated funds transfer 
D) a repeal of severe civil and criminal penalties for such crimes

Question 19

Which of the following statements regarding e-payment technologies is true?

Accepted Answer

A) an advantage to the payer is that float is eliminated 
B) approximately 50% of all business payments in the US use this technology 
C) e-payments are settled through the ACH network, by wire transfer, or by credit card 
D) the cost of paying an invoice is about $.75 when using e-payments 
A) an advantage to the payer is that float is eliminated 
B) approximately 50% of all business payments in the US use this technology 
C) e-payments are settled through the ACH network, by wire transfer, or by credit card 
D) the cost of paying an invoice is about $.75 when using e-payments

Question 20

In the ER diagram for AP/CD process, PURCHASE_REQUISITIONS generate ___________________________________.

Accepted Answer

The answer of In the ER diagram for AP/CD process,...

A control plan that helps ensure the security of resources within the AP/CD process is:

The Level 0 diagram of the AP/CD Process contains the two process bubbles of and .

An organization should ___________________________________ by matching records of cash disbursements to bank records to ensure that all disbursements actually made by the bank were authorized and accurate.

An exception routine is usually performed for:

Input validity for ______________________________ is ensured by making sure that those that bill the company are doing so for goods that were actually ordered and actually received.

In a relational table for VALID_INVOICES, the primary key would be the ______________________________.

Which of the following statements regarding evaluated receipt settlement (ERS) is false?

To ensure that a vendor invoice is recorded accurately and that items on the invoice were ordered and received requires that we __________________________________________________.

At the time that an AP/CD process makes payment for goods or services, the process generally follows which order.

The Level 0 diagram of the AP/CD Process contains the two process bubbles: Establish payable and Approve checks.

In the ER diagram for AP/CD process, PURCHASE_REQUISITIONS generate PURCHASE_ORDERS.

Which of the following process bubbles would you not expect to see in the logical DFD for an AP/CD process?

The cashier usually reports to the controller.

A company using a database approach to data management might not maintain a relational table for ACCOUNTS PAYABLE.Rather, accounts payable balances at any point in time could be computed as the difference between the relations for which of the following continuous events?

In an AP/CD process, a process "make payment" normally would be triggered by the data flow:

In the Level 0 DFD for an AP/CD, a data flow called "receiving report" most likely would be sent by the purchasing process to which of the following processes?

What factor has caused an escalation of check forgeries in recent years?

Which of the following statements regarding e-payment technologies is true?

In the ER diagram for AP/CD process, PURCHASE_REQUISITIONS generate ___________________________________.

Introduction to Accounting Information Systems

Enterprise Systems

Electronic Business E-Business Systems

Documenting Information Systems

Database Management Systems

Relational Databases and Sql

Controlling Information Systems: Introduction to Enterprise Risk Management and Internal Control

Controlling Information Systems: Introduction to Pervasive Controls

Controlling Information Systems: Business Process and Application Controls

The Order Entrysales Oes Process

The Billingaccounts Receivable Cash Receipts Barcr Process

The Purchasing Process

The Human Resources Process HR Management and Payroll Processes

Integrated Production Processes IPP

General Ledger and Business Reporting Glbr Process

Acquiring and Implementing Accounting Information Systems

Filters

Exam 13: Accounts Payablecash Disbursements Apcd Process

A control plan that helps ensure the security of resources within the AP/CD process is:

The Level 0 diagram of the AP/CD Process contains the two process bubbles of ______________________________ and ______________________________.

An organization should ___________________________________ by matching records of cash disbursements to bank records to ensure that all disbursements actually made by the bank were authorized and accurate.

An exception routine is usually performed for:

Input validity for ______________________________ is ensured by making sure that those that bill the company are doing so for goods that were actually ordered and actually received.

In a relational table for VALID_INVOICES, the primary key would be the ______________________________.

Which of the following statements regarding evaluated receipt settlement (ERS) is false?

To ensure that a vendor invoice is recorded accurately and that items on the invoice were ordered and received requires that we __________________________________________________.

At the time that an AP/CD process makes payment for goods or services, the process generally follows which order.

The Level 0 diagram of the AP/CD Process contains the two process bubbles: Establish payable and Approve checks.

In the ER diagram for AP/CD process, PURCHASE_REQUISITIONS generate PURCHASE_ORDERS.

Which of the following process bubbles would you not expect to see in the logical DFD for an AP/CD process?

The cashier usually reports to the controller.

A company using a database approach to data management might not maintain a relational table for ACCOUNTS PAYABLE.Rather, accounts payable balances at any point in time could be computed as the difference between the relations for which of the following continuous events?

In an AP/CD process, a process "make payment" normally would be triggered by the data flow:

In the Level 0 DFD for an AP/CD, a data flow called "receiving report" most likely would be sent by the purchasing process to which of the following processes?

What factor has caused an escalation of check forgeries in recent years?

Which of the following statements regarding e-payment technologies is true?

In the ER diagram for AP/CD process, PURCHASE_REQUISITIONS generate ___________________________________.

Introduction to Accounting Information Systems

Enterprise Systems

Electronic Business E-Business Systems

Documenting Information Systems

Database Management Systems

Relational Databases and Sql

Controlling Information Systems: Introduction to Enterprise Risk Management and Internal Control

Controlling Information Systems: Introduction to Pervasive Controls

Controlling Information Systems: Business Process and Application Controls

The Order Entrysales Oes Process

The Billingaccounts Receivable Cash Receipts Barcr Process

The Purchasing Process

The Human Resources Process HR Management and Payroll Processes

Integrated Production Processes IPP

General Ledger and Business Reporting Glbr Process

Acquiring and Implementing Accounting Information Systems

Filters

The Level 0 diagram of the AP/CD Process contains the two process bubbles of and .