Exam 13: The Accounts Payablecash Disbursements Apcdprocess

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

Chapter 13 describes the electronic invoicing and payment (EIPP)system for the B2C environment.

The control plan ______________________________ requires that the authority for recording a vendor invoice come from the purchase order and receiving report created by entities other than the entity that records the vendor invoice.

Which of the following documents would be matched with the vendor invoice to ensure that the purchase was authorized (i.e. ,to ensure input validity)?

To ensure that only authorized payments are made,there should be ______________________________ whereby the accounts payable records on which the payment is based should created by an entity other than the entity that executes the payment.

The document one business sends to another business that identifies the amount to be paid is:

When the AP/CD process records a payable obligation,the data flow between "validate invoice" and "record payable" is?

______________________________ is an exception that usually occurs at the point of inspecting and counting the goods or when validating vendor invoices.

A company using a centralized 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?

The ______________________________ is an interacting structure of people,equipment,activities,and controls that is designed to accomplish the handling of repetitive work routines of the AP department and the cashier,support their decision needs,and assist in the preparation of internal and external reports.

The ______________________________ data is a repository of all unpaid vendor invoices.

A key control in the AP/CD process is to segregate the treasurer and controller.

The ______________________________ triggers the "make payment" process.

Information technology has enhanced the AP/CD process by:

The cashier usually reports to the ______________________________.

Below is a narrative of the "Establish payable" portion (bubble 1.0)of the AP/CD process described in Chapter 13. Narrative Description The first step in establishing the payable involves validating the vendor invoice.This process is triggered by receipt of the vendor invoice.Process 1.1 comprises a number of steps.First,the vendor invoice is matched against vendor master data to determine that the invoice is from an authorized vendor.Next,the vendor invoice is compared against the PO data (see the flow PO accounts payable notification)to make sure that there is a PO (i.e. ,there is an authorized purchase)and that the invoiced items,quantities,and prices conform to the PO.Then,the invoice is matched against the receiving report data to determine that the items and quantities have been received.Finally,the invoice is further validated by checking for accuracy of terms,computed discounts,extensions,and total amount due.Note that the vendor master data is updated at this point to reflect purchase history data. If the data items do not agree,the invoice is rejected,and follow-up procedures are initiated (see the reject stub emanating from bubble 1.1).If the data items agree,the invoice is approved,and the validated invoice is sent on to the next step to be used to record the payable.Bubble 1.2 depicts the process of recording the payable in the purchase events data and accounts payable master data.A payable is recognized and recorded by: Required: From the DFD (TB Figure 13.3)and the narrative description above,explode bubble 1.0 into a lower-level diagram showing the details of that process.

The ______________________________ master data store is a repository of all unpaid vendor invoices.

The AP process that uses vendor invoices for inputs updates the ______________________________ master data.

The control plan ______________________________ matches records of cash disbursements to bank records to ensure that all disbursements actually made by the bank were authorized and accurate.

In the ER diagram for AP/CD process,CASH_DISBURSEMENTS are prepared by EMPLOYEES (Treasury Employees).