Question 1

In the expenditure cycle,Financial Electronic Data Interchange (FEDI)increases efficiency by

Accepted Answer

A)  eliminating the need for receiving reports. 
B)  eliminating the need for vendor invoices. 
C)  eliminating the need for purchase orders. 
D)  eliminating the need to prepare and mail checks. 
A)  eliminating the need for receiving reports. 
B)  eliminating the need for vendor invoices. 
C)  eliminating the need for purchase orders. 
D)  eliminating the need to prepare and mail checks. D

Question 2

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 D

Question 3

How can using RFID tags or bar codes on goods or products provide significant benefit in the expenditure cycle?

Accepted Answer

RFID tags and bar codes can significantly improve the process of receiving goods from suppliers for several reasons.First,they can easily be scanned electronically.Electronically capturing the unique number of a product not only provides identification and quantity data about the product; it can also provide specific production information such as date and time of manufacture,production run information,etc.Electronically encoding such information into an integrated AIS provides up-to-the-minute inventory counts,as well as counts of units sold,and returns for use in a perpetual inventory system.Also,both vendor and customers can read tags and bar codes,and certain formats are universal in nature.This allows goods to be sold virtually anywhere in the world,allowing for easier global marketing efforts to be made by businesses.It also eliminates the need for human data entry and reduces the risk of stockouts.

Question 4

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

Question 5

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 6

Stepanek Sales and Service provides free coffee to employees.Stepanek arranged with Ingebrigtson's Joe to deliver as many coffee packages,sugar,creamer,and filters as needed each week.Ingebrigtson's sends a monthly invoice for Stepanek to pay.This arrangement is best described as a

Accepted Answer

A)  blanket purchase order. 
B)  set purchase order. 
C)  fixed purchase order. 
D)  standard purchase order. 
A)  blanket purchase order. 
B)  set purchase order. 
C)  fixed purchase order. 
D)  standard purchase order.

Question 7

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 8

Which of the following would be the least effective control to prevent paying the same vendor invoice twice?

Accepted Answer

A)  Allow only the accounts payable department to authorize payment for vendor invoices and allow only the cash disbursements department to cut and mail checks to vendors. 
B)  Only pay from original invoices. 
C)  Cancel each document in the voucher package once the check is prepared and mailed. 
D)  Only pay vendor invoices that have been matched and reconciled to a purchase order and a receiving report. 
A)  Allow only the accounts payable department to authorize payment for vendor invoices and allow only the cash disbursements department to cut and mail checks to vendors. 
B)  Only pay from original invoices. 
C)  Cancel each document in the voucher package once the check is prepared and mailed. 
D)  Only pay vendor invoices that have been matched and reconciled to a purchase order and a receiving report.

Question 9

Define and describe the EOQ approach to inventory management.

Accepted Answer

EOQ (economic order quantity)is the trad

Question 10

The need to place an order for inventory is specified by the

Accepted Answer

A)  company inventory policies. 
B)  economic order quantity. 
C)  stockout point. 
D)  reorder point. 
A)  company inventory policies. 
B)  economic order quantity. 
C)  stockout point. 
D)  reorder point.

Question 11

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.

Question 12

Discuss the differences between EOQ,MRP,and JIT.

Accepted Answer

Economic Order Quantity (EOQ)is the trad

Question 13

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 14

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 15

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

Question 16

There is a symmetrical interdependence between a firm's expenditure cycle and its suppliers'

Accepted Answer

A)  production cycle. 
B)  revenue cycle. 
C)  expenditure cycle. 
D)  general ledger and reporting system. 
A)  production cycle. 
B)  revenue cycle. 
C)  expenditure cycle. 
D)  general ledger and reporting system.

Question 17

One of the major responsibilities of the receiving department is

Accepted Answer

A)  deciding if the delivery should be accepted. 
B)  verifying any purchase discounts for the delivery. 
C)  deciding on the location where the delivery will be stored until used. 
D)  updating inventory subsidiary ledgers. 
A)  deciding if the delivery should be accepted. 
B)  verifying any purchase discounts for the delivery. 
C)  deciding on the location where the delivery will be stored until used. 
D)  updating inventory subsidiary ledgers.

Question 18

Bob Chum is the sales manager at Folding Squid Technologies.At lunch with the company CEO,he proudly announced that he had negotiated a(n)________ with a client that defined a long-term commitment to buy components from Folding Squid.

Accepted Answer

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

Question 19

What is not an advantage of using disbursement vouchers?

Accepted Answer

A)  Disbursement vouchers reduce the number of checks written. 
B)  Disbursement vouchers can be prenumbered which simplifies the tracking of all payables. 
C)  Disbursement vouchers facilitate separating the time of invoice approval from the time of invoice payment. 
D)  There are no disadvantages to using disbursement vouchers. 
A)  Disbursement vouchers reduce the number of checks written. 
B)  Disbursement vouchers can be prenumbered which simplifies the tracking of all payables. 
C)  Disbursement vouchers facilitate separating the time of invoice approval from the time of invoice payment. 
D)  There are no disadvantages to using disbursement vouchers.

Question 20

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

Exam 13: The Expenditure Cycle: Purchasing to Cash Disbursements

In the expenditure cycle,Financial Electronic Data Interchange (FEDI)increases efficiency by

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

How can using RFID tags or bar codes on goods or products provide significant benefit in the expenditure cycle?

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

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

Stepanek Sales and Service provides free coffee to employees.Stepanek arranged with Ingebrigtson's Joe to deliver as many coffee packages,sugar,creamer,and filters as needed each week.Ingebrigtson's sends a monthly invoice for Stepanek to pay.This arrangement is best described as a

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 ________.

Which of the following would be the least effective control to prevent paying the same vendor invoice twice?

Define and describe the EOQ approach to inventory management.

The need to place an order for inventory is specified by the

Which control would best prevent payments made to fictitious vendors?

Discuss the differences between EOQ,MRP,and JIT.

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

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

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

There is a symmetrical interdependence between a firm's expenditure cycle and its suppliers'

One of the major responsibilities of the receiving department is

Bob Chum is the sales manager at Folding Squid Technologies.At lunch with the company CEO,he proudly announced that he had negotiated a(n)________ with a client that defined a long-term commitment to buy components from Folding Squid.

What is not an advantage of using disbursement vouchers?

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.

Accounting Information Systems: an Overview

Overview of Transaction Processing and Erp Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Information Systems Controls for System Reliability Part 1: Information Security

Information Systems Controls for Systems Reliability Part 2: Confidentiality and Privacy

Information Systems Controls for Systems Reliability Part 3: Processing Integrity and Availability

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

The Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

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

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 .