Question 1

The disbursement voucher and supporting documents are sent to the ________ for payment prior to the due date.

Accepted Answer

A) cashier 
B) treasurer 
C) controller 
D) accounts payable department 
A) cashier 
B) treasurer 
C) controller 
D) accounts payable department A

Question 2

The management at Barks-a-Million is considering a new inventory control system.The current system is inadequate because it frequently causes stockouts that interrupt production and lead to excess stock of other materials - resulting in markdowns and high carrying costs.The new system will focus on ensuring that these costs are minimized.The new inventory control system will likely employ

Accepted Answer

A) a reorder point. 
B) a just-in-time inventory system. 
C) the economic order quantity. 
D) materials requirements planning. 
A) a reorder point. 
B) a just-in-time inventory system. 
C) the economic order quantity. 
D) materials requirements planning. C

Question 3

A surprise count of an imprest petty cash fund should find the total of ________ equal to the amount authorized for the fund.

Accepted Answer

A) cash and credit memos 
B) cash and vouchers 
C) cash 
D) cash and checks 
A) cash and credit memos 
B) cash and vouchers 
C) cash 
D) cash and checks B

Question 4

Which of the following threats is not specific to the purchase requisition process of the expenditure cycle?

Accepted Answer

A) stockouts 
B) purchasing from unauthorized vendors 
C) requisitioning goods not needed 
D) All of the above are threats in the purchase requisition process. 
A) stockouts 
B) purchasing from unauthorized vendors 
C) requisitioning goods not needed 
D) All of the above are threats in the purchase requisition process.

Question 5

Identify in which of the following scenarios a company could adjust the balance due the vendor by issuing a debit memo.

Accepted Answer

A) quantity different from that ordered 
B) damage to the goods 
C) goods that fail inspection for quality 
D) All of the above are possible scenarios. 
A) quantity different from that ordered 
B) damage to the goods 
C) goods that fail inspection for quality 
D) All of the above are possible scenarios.

Question 6

The traditional approach to inventory management generally involves

Accepted Answer

A) high stockout costs. 
B) minimizing item cost. 
C) receiving goods or services just prior to the time they are needed. 
D) maintaining inventory levels so that production can continue even if inventory use is greater than expected. 
A) high stockout costs. 
B) minimizing item cost. 
C) receiving goods or services just prior to the time they are needed. 
D) maintaining inventory levels so that production can continue even if inventory use is greater than expected.

Question 7

MacDougalKids is a mid-sized manufacturer of organic baby food.MacDougalKids uses a JIT inventory management approach.Which of the following factors would likely be least important when selecting inventory suppliers?

Accepted Answer

A) product price 
B) product quality 
C) vendor delivery dependability 
D) All would be equally important 
A) product price 
B) product quality 
C) vendor delivery dependability 
D) All would be equally important

Question 8

What is the key difference between the MRP and JIT inventory management approaches?

Accepted Answer

A) Only JIT reduces costs and improves efficiency. 
B) MRP is especially useful for products such as fashion apparel. 
C) JIT is more effectively used with products that have predictable patterns of demand. 
D) MRP schedules production to meet estimated sales needs;JIT schedules production to meet customer demands. 
A) Only JIT reduces costs and improves efficiency. 
B) MRP is especially useful for products such as fashion apparel. 
C) JIT is more effectively used with products that have predictable patterns of demand. 
D) MRP schedules production to meet estimated sales needs;JIT schedules production to meet customer demands.

Question 9

Identify the item below that is the biggest purchasing function cost driver.

Accepted Answer

A) the number of purchase requisitions processed 
B) the number of suppliers used 
C) the number of purchase orders processed 
D) the quantity of items ordered 
A) the number of purchase requisitions processed 
B) the number of suppliers used 
C) the number of purchase orders processed 
D) the quantity of items ordered

Question 10

Which of the following is not an activity performed in the expenditure cycle?

Accepted Answer

A) ordering 
B) receiving 
C) cash disbursement 
D) shipping 
A) ordering 
B) receiving 
C) cash disbursement 
D) shipping

Question 11

A reverse auction would likely be best suited to the purchase of

Accepted Answer

A) central processing units (CPUs). 
B) soybeans. 
C) designer clothing. 
D) automobiles. 
A) central processing units (CPUs). 
B) soybeans. 
C) designer clothing. 
D) automobiles.

Question 12

Procurement cards differ from corporate credit cards in which of the following ways?

Accepted Answer

A) Credit limits can be set for procurement cards,but not corporate credit cards. 
B) Credit cards can be used to make purchases without an explicit sign off by supervisors,but procurement cards require a sign off. 
C) Procurement cards can only be used with approved vendors,but credit cards can be used anywhere. 
D) Procurement card invoices are sent separately for each card,whereas corporate credit cards are consolidated into a single invoice. 
A) Credit limits can be set for procurement cards,but not corporate credit cards. 
B) Credit cards can be used to make purchases without an explicit sign off by supervisors,but procurement cards require a sign off. 
C) Procurement cards can only be used with approved vendors,but credit cards can be used anywhere. 
D) Procurement card invoices are sent separately for each card,whereas corporate credit cards are consolidated into a single invoice.

Question 13

When purchasing miscellaneous supplies,companies can reduce costs,improve efficiency,and combat employee fraud by

Accepted Answer

A) using procurement cards. 
B) implementing a JIT inventory system. 
C) requiring employees to personally purchase items then reimbursing employees at the end of each month. 
D) paying amounts out of petty cash. 
A) using procurement cards. 
B) implementing a JIT inventory system. 
C) requiring employees to personally purchase items then reimbursing employees at the end of each month. 
D) paying amounts out of petty cash.

Question 14

The operation of an imprest petty cash fund technically violates the principle of segregation of duties.

Accepted Answer

A) True 
 B)False

Question 15

One objective of accounts payable is to authorize payment only for goods or services actually ordered and received.The best way to process supplier invoices is to use

Accepted Answer

A) electronic funds transfer for small,occasional purchases from suppliers. 
B) a nonvoucher system. 
C) EDI for all small,occasional purchases from suppliers. 
D) a disbursement voucher system. 
A) electronic funds transfer for small,occasional purchases from suppliers. 
B) a nonvoucher system. 
C) EDI for all small,occasional purchases from suppliers. 
D) a disbursement voucher system.

Question 16

Ngai Nhung is the sales manager at Hung Technologies.At lunch with the company CEO,Ngai proudly announced that he had negotiated a(n)________ with a client that represented the customer's long-term commitment to buy components from Hung.

Accepted Answer

A) purchase order 
B) evaluated receipt settlement 
C) voucher 
D) blanket purchase order 
A) purchase order 
B) evaluated receipt settlement 
C) voucher 
D) blanket purchase order

Question 17

Identify ten threats and applicable control procedures in the expenditure cycle.

Accepted Answer

Answers can include the following inform

Question 18

Once a vendor is selected for a product,the vendor's identity is recorded in the

Accepted Answer

A) purchase requisition transaction file. 
B) purchase requisition master file. 
C) inventory transaction file. 
D) inventory master file. 
A) purchase requisition transaction file. 
B) purchase requisition master file. 
C) inventory transaction file. 
D) inventory master file.

Question 19

Usually the supplier will give the buyer permission to correct the invoice for any discrepancies in quantity.In the case of damaged or poor-quality goods,a document called a(n)________ is prepared after the supplier agrees to take back the goods or to grant a price reduction.

Accepted Answer

A) credit memo 
B) debit memo 
C) adjustment memo 
D) return memo 
A) credit memo 
B) debit memo 
C) adjustment memo 
D) return memo

Question 20

The management at Barks-a-Million is considering a new inventory control system.The current system is inadequate because it frequently causes stockouts that interrupt production and lead to excess stock of other materials - resulting in markdowns and high carrying costs.The new system,which will focus on forecasting demand for their products,will likely employ

Accepted Answer

A) a just-in-time inventory system. 
B) the economic order quantity. 
C) materials requirements planning. 
D) a reorder point. 
A) a just-in-time inventory system. 
B) the economic order quantity. 
C) materials requirements planning. 
D) a reorder point.

The disbursement voucher and supporting documents are sent to the ________ for payment prior to the due date.

A surprise count of an imprest petty cash fund should find the total of ________ equal to the amount authorized for the fund.

Which of the following threats is not specific to the purchase requisition process of the expenditure cycle?

Identify in which of the following scenarios a company could adjust the balance due the vendor by issuing a debit memo.

The traditional approach to inventory management generally involves

MacDougalKids is a mid-sized manufacturer of organic baby food.MacDougalKids uses a JIT inventory management approach.Which of the following factors would likely be least important when selecting inventory suppliers?

What is the key difference between the MRP and JIT inventory management approaches?

Identify the item below that is the biggest purchasing function cost driver.

Which of the following is not an activity performed in the expenditure cycle?

A reverse auction would likely be best suited to the purchase of

Procurement cards differ from corporate credit cards in which of the following ways?

When purchasing miscellaneous supplies,companies can reduce costs,improve efficiency,and combat employee fraud by

The operation of an imprest petty cash fund technically violates the principle of segregation of duties.

One objective of accounts payable is to authorize payment only for goods or services actually ordered and received.The best way to process supplier invoices is to use

Ngai Nhung is the sales manager at Hung Technologies.At lunch with the company CEO,Ngai proudly announced that he had negotiated a(n)________ with a client that represented the customer's long-term commitment to buy components from Hung.

Identify ten threats and applicable control procedures in the expenditure cycle.

Once a vendor is selected for a product,the vendor's identity is recorded in the

Usually the supplier will give the buyer permission to correct the invoice for any discrepancies in quantity.In the case of damaged or poor-quality goods,a document called a(n)________ is prepared after the supplier agrees to take back the goods or to grant a price reduction.

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Production Cycle

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

Exam 13: The Expenditure Cycle: Purchasing to Cash Disbursements

The disbursement voucher and supporting documents are sent to the ________ for payment prior to the due date.

A surprise count of an imprest petty cash fund should find the total of ________ equal to the amount authorized for the fund.

Which of the following threats is not specific to the purchase requisition process of the expenditure cycle?

Identify in which of the following scenarios a company could adjust the balance due the vendor by issuing a debit memo.

The traditional approach to inventory management generally involves

MacDougalKids is a mid-sized manufacturer of organic baby food.MacDougalKids uses a JIT inventory management approach.Which of the following factors would likely be least important when selecting inventory suppliers?

What is the key difference between the MRP and JIT inventory management approaches?

Identify the item below that is the biggest purchasing function cost driver.

Which of the following is not an activity performed in the expenditure cycle?

A reverse auction would likely be best suited to the purchase of

Procurement cards differ from corporate credit cards in which of the following ways?

When purchasing miscellaneous supplies,companies can reduce costs,improve efficiency,and combat employee fraud by

The operation of an imprest petty cash fund technically violates the principle of segregation of duties.

One objective of accounts payable is to authorize payment only for goods or services actually ordered and received.The best way to process supplier invoices is to use

Ngai Nhung is the sales manager at Hung Technologies.At lunch with the company CEO,Ngai proudly announced that he had negotiated a(n)________ with a client that represented the customer's long-term commitment to buy components from Hung.

Identify ten threats and applicable control procedures in the expenditure cycle.

Once a vendor is selected for a product,the vendor's identity is recorded in the

Usually the supplier will give the buyer permission to correct the invoice for any discrepancies in quantity.In the case of damaged or poor-quality goods,a document called a(n)________ is prepared after the supplier agrees to take back the goods or to grant a price reduction.

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Production Cycle

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters