Question 1

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 2

If available,a 1% discount for payment within 10 days instead of 30 days represents an approximate savings of ________% annually.

Accepted Answer

A) 1 
B) 12 
C) 18 
D) 36 
A) 1 
B) 12 
C) 18 
D) 36

Question 3

Discuss the differences between EOQ,MRP,and JIT.

Accepted Answer

Economic Order Quantity (EOQ)is the trad

Question 4

It is important to physically count inventory,at least periodically,even in a perpetual inventory system.

Accepted Answer

A) True 
 B)False

Question 5

In the expenditure cycle,good control dictates that expenditures should be paid by check.This may not be feasible when minor purchases are made.To facilitate quick payment for minor purchases,a(n)________ should be set up and maintained using ________.

Accepted Answer

A) special bank account; disbursement vouchers 
B) imprest fund; vouchers 
C) cash box; small denomination bills 
D) petty cash fund; procurement cards 
A) special bank account; disbursement vouchers 
B) imprest fund; vouchers 
C) cash box; small denomination bills 
D) petty cash fund; procurement cards

Question 6

a)What is the major cost driver in the purchasing function? b)Describe how information technology can be used to control this cost driver.

Accepted Answer

a)The major cost driver in the purchasin

Question 7

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 8

A(n)________ system posts an approved invoice to the vendor account and stores it in an open invoice file until payment is made by check.

Accepted Answer

A) nonvoucher 
B) voucher 
C) cycle 
D) evaluated receipt settlement 
A) nonvoucher 
B) voucher 
C) cycle 
D) evaluated receipt settlement

Question 9

Under the EOQ inventory approach,carrying costs are usually ignored for low-cost/low-usage items.

Accepted Answer

A) True 
 B)False

Question 10

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 11

What is the best way to prevent the acceptance of goods that were never ordered?

Accepted Answer

A) Order only from approved vendors. 
B) Enforce an appropriate conflict of interest policy in place. 
C) Match the packing slip to a purchase order before accepting delivery. 
D) Require specific authorization from the purchasing manager before accepting any goods. 
A) Order only from approved vendors. 
B) Enforce an appropriate conflict of interest policy in place. 
C) Match the packing slip to a purchase order before accepting delivery. 
D) Require specific authorization from the purchasing manager before accepting any goods.

Question 12

________ attempts to minimize or eliminate carrying and stockout costs.

Accepted Answer

A) Just-in-time inventory 
B) Materials requirements planning 
C) Economic order quantity 
D) Evaluated receipt settlement 
A) Just-in-time inventory 
B) Materials requirements planning 
C) Economic order quantity 
D) Evaluated receipt settlement

Question 13

Once a purchase request is approved,what is the next step?

Accepted Answer

A) The system creates a purchase order. 
B) The accounts payable department approves the purchase request, creating a purchase order. 
C) The inventory master file is accessed to find the preferred supplier(s). 
D) The department that created the purchase request may buy the requested item(s). 
A) The system creates a purchase order. 
B) The accounts payable department approves the purchase request, creating a purchase order. 
C) The inventory master file is accessed to find the preferred supplier(s). 
D) The department that created the purchase request may buy the requested item(s).

Question 14

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 15

Which of the following is not an advantage of a voucher system?

Accepted Answer

A) Several invoices may be included on one voucher, reducing the number of checks. 
B) Disbursement vouchers may be pre-numbered and tracked through the system. 
C) The time of voucher approval and payment can be kept separate. 
D) It is a less expensive and easier system to administer than other systems. 
A) Several invoices may be included on one voucher, reducing the number of checks. 
B) Disbursement vouchers may be pre-numbered and tracked through the system. 
C) The time of voucher approval and payment can be kept separate. 
D) It is a less expensive and easier system to administer than other systems.

Question 16

What control should be put in place that assigns responsibility for EFT payments made to vendors?

Accepted Answer

A) Encrypt all EFT transmissions. 
B) Time stamp all EFT transactions. 
C) Establish a control group to monitor EFT transactions for validity and accuracy. 
D) Number all EFT transactions. 
A) Encrypt all EFT transmissions. 
B) Time stamp all EFT transactions. 
C) Establish a control group to monitor EFT transactions for validity and accuracy. 
D) Number all EFT transactions.

Question 17

The EOQ approach to managing inventory has been gaining popularity in recent years.

Accepted Answer

A) True 
 B)False

Question 18

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 19

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 20

Which control would best prevent payments made to fictitious vendors?

Accepted Answer

A) Allow payments only to approved vendors. 
B) Restrict access to any payment or approval documents. 
C) Have an independent bank reconciliation. 
D) Make sure all documents are in order before approving payments. 
A) Allow payments only to approved vendors. 
B) Restrict access to any payment or approval documents. 
C) Have an independent bank reconciliation. 
D) Make sure all documents are in order before approving payments.

Exam 13: The Expenditure Cycle: Purchasing to Cash Disbursements

A disbursement voucher contains

If available,a 1% discount for payment within 10 days instead of 30 days represents an approximate savings of ________% annually.

Discuss the differences between EOQ,MRP,and JIT.

It is important to physically count inventory,at least periodically,even in a perpetual inventory system.

In the expenditure cycle,good control dictates that expenditures should be paid by check.This may not be feasible when minor purchases are made.To facilitate quick payment for minor purchases,a(n)________ should be set up and maintained using ________.

a)What is the major cost driver in the purchasing function? b)Describe how information technology can be used to control this cost driver.

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(n)________ system posts an approved invoice to the vendor account and stores it in an open invoice file until payment is made by check.

Under the EOQ inventory approach,carrying costs are usually ignored for low-cost/low-usage items.

The traditional approach to inventory management generally involves

What is the best way to prevent the acceptance of goods that were never ordered?

________ attempts to minimize or eliminate carrying and stockout costs.

Once a purchase request is approved,what is the next step?

Which of the following is not an advantage of a voucher system?

What control should be put in place that assigns responsibility for EFT payments made to vendors?

The EOQ approach to managing inventory has been gaining popularity in recent years.

EFT payments are generally performed by

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

Which control would best prevent payments made to fictitious vendors?

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

In the expenditure cycle,good control dictates that expenditures should be paid by check.This may not be feasible when minor purchases are made.To facilitate quick payment for minor purchases,a(n) should be set up and maintained using .