Question 1

What is one of the best ways to improve the overall efficiency and effectiveness of the receipt and storage of ordered items?

Accepted Answer

A) requiring all suppliers to have the carrier verify quantities and item numbers before shipment 
B) requiring all suppliers to include RFID tags on their items 
C) requiring all suppliers to use EDI to expedite the receiving department function 
D) requiring all delivery trucks to have satellite data terminals to expedite the receiving department function 
A) requiring all suppliers to have the carrier verify quantities and item numbers before shipment 
B) requiring all suppliers to include RFID tags on their items 
C) requiring all suppliers to use EDI to expedite the receiving department function 
D) requiring all delivery trucks to have satellite data terminals to expedite the receiving department function

Question 2

Just-In-Time (JIT)inventory is best characterized by

Accepted Answer

A) frequent deliveries of large quantities to be held at the work centers. 
B) frequent deliveries of smaller quantities of items to the work centers. 
C) less frequent deliveries of large quantities of goods to central receiving. 
D) infrequent bulk deliveries of items directly to work centers. 
A) frequent deliveries of large quantities to be held at the work centers. 
B) frequent deliveries of smaller quantities of items to the work centers. 
C) less frequent deliveries of large quantities of goods to central receiving. 
D) infrequent bulk deliveries of items directly to work centers.

Question 3

A major cost in the purchasing function is the number of purchase orders processed.One technique that may reduce purchasing-related expenses is to have suppliers compete with each other to meet demand at the lowest price.The name of this technique is

Accepted Answer

A) an EDI auction. 
B) a trading exchange. 
C) a reverse auction. 
D) a supplier consortium. 
A) an EDI auction. 
B) a trading exchange. 
C) a reverse auction. 
D) a supplier consortium.

Question 4

Explain what is meant by the expenditure cycle as a "mirror image" of the revenue cycle.

Accepted Answer

The expenditure cycle has been called a

Question 5

Which electronic files are either read or updated when goods are ordered from a vendor?

Accepted Answer

A) inventory,vendors,and accounts payable 
B) vendors and accounts payable 
C) inventory,vendors,and open purchase orders 
D) open purchase orders and accounts payable 
A) inventory,vendors,and accounts payable 
B) vendors and accounts payable 
C) inventory,vendors,and open purchase orders 
D) open purchase orders and accounts payable

Question 6

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 reducing or completely eliminating carrying costs,most likely employing

Accepted Answer

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

Question 7

To minimize the number of checks that need to be written to pay vendor invoices,a company should use

Accepted Answer

A) a voucher system. 
B) a just-in-time inventory system. 
C) a nonvoucher system. 
D) an evaluated receipt settlement system. 
A) a voucher system. 
B) a just-in-time inventory system. 
C) a nonvoucher system. 
D) an evaluated receipt settlement system.

Question 8

A JIT inventory system would be especially useful for a company that manufactures

Accepted Answer

A) toys associated with new movie releases. 
B) toothpaste. 
C) alarm clocks. 
D) motor oil. 
A) toys associated with new movie releases. 
B) toothpaste. 
C) alarm clocks. 
D) motor oil.

Question 9

Identify the most accurate statement below.

Accepted Answer

A) Several purchase requisitions are often created to fill one purchase order. 
B) Several purchase orders are often created to fill one purchase requisition. 
C) Every purchase requisition should lead to the creation of one purchase order. 
D) Every purchase order should lead to the creation of one purchase requisition. 
A) Several purchase requisitions are often created to fill one purchase order. 
B) Several purchase orders are often created to fill one purchase requisition. 
C) Every purchase requisition should lead to the creation of one purchase order. 
D) Every purchase order should lead to the creation of one purchase requisition.

Question 10

Vendor invoices are approved by the ________,which reports to the ________.

Accepted Answer

A) purchasing department;controller 
B) accounts payable department;treasurer 
C) purchasing department;treasurer 
D) accounts payable department;controller 
A) purchasing department;controller 
B) accounts payable department;treasurer 
C) purchasing department;treasurer 
D) accounts payable department;controller

Question 11

Economic Order Quantity (EOQ)includes several variables that must be taken into consideration when calculating the optimal order size.One variable,the costs associated with holding inventory,is referred to as

Accepted Answer

A) ordering costs. 
B) carrying costs. 
C) the reorder point. 
D) stockout costs. 
A) ordering costs. 
B) carrying costs. 
C) the reorder point. 
D) stockout costs.

Question 12

A voucher package should include

Accepted Answer

A) a purchase requisition,vendor invoice,and receiving report. 
B) a purchase order,vendor invoice,and receiving report. 
C) a purchase requisition,purchase order,and receiving report. 
D) a bill of lading and vendor invoice. 
A) a purchase requisition,vendor invoice,and receiving report. 
B) a purchase order,vendor invoice,and receiving report. 
C) a purchase requisition,purchase order,and receiving report. 
D) a bill of lading and vendor invoice.

Question 13

A disbursement voucher contains

Accepted Answer

A) a list of outstanding invoices. 
B) the net payment amount after deducting applicable discounts and allowances. 
C) the general ledger accounts to be debited. 
D) All of the above are correct. 
A) a list of outstanding invoices. 
B) the net payment amount after deducting applicable discounts and allowances. 
C) the general ledger accounts to be debited. 
D) All of the above are correct.

Question 14

EFT payments are generally performed by

Accepted Answer

A) the treasurer. 
B) a cashier. 
C) an accounts payable clerk. 
D) a credit manager. 
A) the treasurer. 
B) a cashier. 
C) an accounts payable clerk. 
D) a credit manager.

Question 15

When would an MRP inventory approach be preferred to a JIT inventory approach?

Accepted Answer

A) when a product has a short life cycle 
B) when demand for inventory is fairly predictable 
C) when demand for inventory is very unpredictable 
D) MRP is always a preferred method over JIT. 
A) when a product has a short life cycle 
B) when demand for inventory is fairly predictable 
C) when demand for inventory is very unpredictable 
D) MRP is always a preferred method over JIT.

Question 16

What is the best control to mitigate the threat of paying prices that are too high for goods ordered?

Accepted Answer

A) Require the receiving department to verify the existence of a valid purchase order. 
B) Use only approved suppliers and solicit competitive bids. 
C) Only pay invoices that are supported by the original voucher package. 
D) Use bar-code technology to eliminate data entry errors. 
A) Require the receiving department to verify the existence of a valid purchase order. 
B) Use only approved suppliers and solicit competitive bids. 
C) Only pay invoices that are supported by the original voucher package. 
D) Use bar-code technology to eliminate data entry errors.

Question 17

MacDougalKids is a mid-sized manufacturer of organic baby food.MacDougalKids uses the EOQ 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 18

The receiving clerk at Wattana Technologies examines incoming shipments and reconciles their contents with the relevant purchase orders.A receiving report is then sent to accounts receivable and the vendor's invoice is approved for payment.Which of the following would correct control weaknesses related to these activities?

Accepted Answer

A) Accounts payable should reconcile the purchase order and the receiving report. 
B) The invoice should be approved for payment by the shipping clerk after the purchase order and receiving report are reconciled. 
C) Invoices,purchase orders,and receiving reports should be reconciled by the receiving clerk. 
D) Controls are adequate under the current system. 
A) Accounts payable should reconcile the purchase order and the receiving report. 
B) The invoice should be approved for payment by the shipping clerk after the purchase order and receiving report are reconciled. 
C) Invoices,purchase orders,and receiving reports should be reconciled by the receiving clerk. 
D) Controls are adequate under the current system.

Question 19

An important control that can be used to reduce the risk of employee kickbacks is

Accepted Answer

A) surveillance cameras. 
B) job rotation. 
C) off-site restrooms. 
D) use of ID badges. 
A) surveillance cameras. 
B) job rotation. 
C) off-site restrooms. 
D) use of ID badges.

Question 20

If duties are properly segregated,the authorization function is performed by ________,the recording function is performed by ________,and cash handling is performed by the ________.

Accepted Answer

A) accounts payable;purchasing;cashier 
B) purchasing;accounts payable;cashier 
C) purchasing;cashier;accounts payable 
D) purchasing;accounts payable;treasurer 
A) accounts payable;purchasing;cashier 
B) purchasing;accounts payable;cashier 
C) purchasing;cashier;accounts payable 
D) purchasing;accounts payable;treasurer

What is one of the best ways to improve the overall efficiency and effectiveness of the receipt and storage of ordered items?

Just-In-Time (JIT)inventory is best characterized by

A major cost in the purchasing function is the number of purchase orders processed.One technique that may reduce purchasing-related expenses is to have suppliers compete with each other to meet demand at the lowest price.The name of this technique is

Explain what is meant by the expenditure cycle as a "mirror image" of the revenue cycle.

Which electronic files are either read or updated when goods are ordered from a vendor?

To minimize the number of checks that need to be written to pay vendor invoices,a company should use

A JIT inventory system would be especially useful for a company that manufactures

Identify the most accurate statement below.

Vendor invoices are approved by the ,which reports to the .

Economic Order Quantity (EOQ)includes several variables that must be taken into consideration when calculating the optimal order size.One variable,the costs associated with holding inventory,is referred to as

A voucher package should include

A disbursement voucher contains

EFT payments are generally performed by

When would an MRP inventory approach be preferred to a JIT inventory approach?

What is the best control to mitigate the threat of paying prices that are too high for goods ordered?

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

An important control that can be used to reduce the risk of employee kickbacks is

If duties are properly segregated,the authorization function is performed by ,the recording function is performed by ,and cash handling is performed by the .

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

What is one of the best ways to improve the overall efficiency and effectiveness of the receipt and storage of ordered items?

Just-In-Time (JIT)inventory is best characterized by

A major cost in the purchasing function is the number of purchase orders processed.One technique that may reduce purchasing-related expenses is to have suppliers compete with each other to meet demand at the lowest price.The name of this technique is

Explain what is meant by the expenditure cycle as a "mirror image" of the revenue cycle.

Which electronic files are either read or updated when goods are ordered from a vendor?

To minimize the number of checks that need to be written to pay vendor invoices,a company should use

A JIT inventory system would be especially useful for a company that manufactures

Identify the most accurate statement below.

Vendor invoices are approved by the ________,which reports to the ________.

Economic Order Quantity (EOQ)includes several variables that must be taken into consideration when calculating the optimal order size.One variable,the costs associated with holding inventory,is referred to as

A voucher package should include

A disbursement voucher contains

EFT payments are generally performed by

When would an MRP inventory approach be preferred to a JIT inventory approach?

What is the best control to mitigate the threat of paying prices that are too high for goods ordered?

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

An important control that can be used to reduce the risk of employee kickbacks is

If duties are properly segregated,the authorization function is performed by ________,the recording function is performed by ________,and cash handling is performed by the ________.

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

Vendor invoices are approved by the ,which reports to the .

If duties are properly segregated,the authorization function is performed by ,the recording function is performed by ,and cash handling is performed by the .