Question 1

Which of the following controls can minimize the threat of mistakes in counting incoming inventory?

Accepted Answer

A) The use of positive pay. 
B) Do not inform receiving employees about quantity ordered. 
C) The use of ERS. 
D) Perpetual inventory system. 
A) The use of positive pay. 
B) Do not inform receiving employees about quantity ordered. 
C) The use of ERS. 
D) Perpetual inventory system.

Question 2

Comparing quantities on a vendor invoice to quantities on the receiving report would not prevent or detect which of the following situations?

Accepted Answer

A) receiving and accepting inventory not ordered 
B) theft of inventory by receiving department employees 
C) update of wrong inventory items due to data entry error 
D) order for an excessive quantity of inventory 
A) receiving and accepting inventory not ordered 
B) theft of inventory by receiving department employees 
C) update of wrong inventory items due to data entry error 
D) order for an excessive quantity of inventory

Question 3

Restricting access to the approved supplier list can

Accepted Answer

A) help reduce the risk of fraudulent disbursements. 
B) cause purchase order approval delays. 
C) eliminate the risk of duplicate payment. 
D) improve the efficiency of the expenditure cycle. 
A) help reduce the risk of fraudulent disbursements. 
B) cause purchase order approval delays. 
C) eliminate the risk of duplicate payment. 
D) improve the efficiency of the expenditure cycle.

Question 4

The Gwallter Reece Chihuahua Sweater Co.(GRCCo)was established in 2013.It recently signed a large contract with PetCo pet stores.GRCCo will be required to track and forecast sweater sales by linking in to PetCo's sales database.GRCCo will then be responsible for shipping products to PetCo as needed.The relationship between GRCCo and PetCo is an example of

Accepted Answer

A) sales force automation. 
B) electronic data interchange. 
C) optical character recognition. 
D) vendor-managed inventory. 
A) sales force automation. 
B) electronic data interchange. 
C) optical character recognition. 
D) vendor-managed inventory.

Question 5

The receiving clerk at Wattana Technologies examines incoming shipments and checks their purchase order numbers.A receiving report is then sent to accounts payable,where it is reconciled with the relevant purchase orders and invoices and payment is authorized.Which of the following would correct control weaknesses related to the clerk's activities?

Accepted Answer

A) Controls are adequate under the current system. 
B) Vendor invoices should be approved for payment by the purchasing manager. 
C) Purchase orders and receiving reports should be reconciled by the purchasing manager. 
D) Vendor invoices should be approved for payment by the shipping clerk after the purchase order and receiving report are reconciled. 
A) Controls are adequate under the current system. 
B) Vendor invoices should be approved for payment by the purchasing manager. 
C) Purchase orders and receiving reports should be reconciled by the purchasing manager. 
D) Vendor invoices should be approved for payment by the shipping clerk after the purchase order and receiving report are reconciled.

Question 6

To accomplish the objectives set forth in the expenditure cycle,a number of key management decisions must be addressed.Which of the decisions below is not ordinarily found as part of the expenditure cycle?

Accepted Answer

A) How can cash payments to vendors be managed to maximize cash flow? 
B) What is the optimal level of inventory and supplies to carry on hand? 
C) Where should inventories and supplies be held? 
D) What are the optimal prices for each product or service? 
A) How can cash payments to vendors be managed to maximize cash flow? 
B) What is the optimal level of inventory and supplies to carry on hand? 
C) Where should inventories and supplies be held? 
D) What are the optimal prices for each product or service?

Question 7

Ngai Nhung is the sales manager at Hung Technologies.At lunch with the company CEO,Ngai proudly announced that he had received a ________ from a client.The client had just requested a large quantity of components from Hung.

Accepted Answer

A) blanket purchase order 
B) voucher 
C) purchase order 
D) purchase requisition 
A) blanket purchase order 
B) voucher 
C) purchase order 
D) purchase requisition

Question 8

One way a firm could reduce the risk of problems with supplier dependability is to

Accepted Answer

A) purchase inventory from only U.S.-based suppliers. 
B) use an ERP system for purchases. 
C) require suppliers to be ISO 9000 certified. 
D) automate the purchasing function. 
A) purchase inventory from only U.S.-based suppliers. 
B) use an ERP system for purchases. 
C) require suppliers to be ISO 9000 certified. 
D) automate the purchasing function.

Which of the following controls can minimize the threat of mistakes in counting incoming inventory?

Comparing quantities on a vendor invoice to quantities on the receiving report would not prevent or detect which of the following situations?

Restricting access to the approved supplier list can

To accomplish the objectives set forth in the expenditure cycle,a number of key management decisions must be addressed.Which of the decisions below is not ordinarily found as part of the expenditure cycle?

Ngai Nhung is the sales manager at Hung Technologies.At lunch with the company CEO,Ngai proudly announced that he had received a ________ from a client.The client had just requested a large quantity of components from Hung.

One way a firm could reduce the risk of problems with supplier dependability is to

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

Which of the following controls can minimize the threat of mistakes in counting incoming inventory?

Comparing quantities on a vendor invoice to quantities on the receiving report would not prevent or detect which of the following situations?

Restricting access to the approved supplier list can

To accomplish the objectives set forth in the expenditure cycle,a number of key management decisions must be addressed.Which of the decisions below is not ordinarily found as part of the expenditure cycle?

Ngai Nhung is the sales manager at Hung Technologies.At lunch with the company CEO,Ngai proudly announced that he had received a ________ from a client.The client had just requested a large quantity of components from Hung.

One way a firm could reduce the risk of problems with supplier dependability is to

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