Question 1

What is the best way to prevent the acceptance of unordered goods?

Accepted Answer

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

Question 2

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 3

How can information technology be used to improve the vendor invoice approval process?

Accepted Answer

EDI eliminates the need to enter invoice

Question 4

In the expenditure cycle,the majority of payments made are by check.What are some control issues related to payment of vendors by check?

Accepted Answer

Key control problems in the area of paym

Question 5

Materials requirements planning (MRP)

Accepted Answer

A)  reduces the uncertainty about when materials are needed, thereby reducing the need to carry large levels of inventory. 
B)  is able to compute exactly the cost of purchasing by taking into account all costs associated with inventory carrying. 
C)  requires vendors to deliver inventory to the production site exactly when needed and in the correct quantities. 
D)  None of the above are correct. 
A)  reduces the uncertainty about when materials are needed, thereby reducing the need to carry large levels of inventory. 
B)  is able to compute exactly the cost of purchasing by taking into account all costs associated with inventory carrying. 
C)  requires vendors to deliver inventory to the production site exactly when needed and in the correct quantities. 
D)  None of the above are correct.

Question 6

The receiving clerk at Folding Squid 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,if any,related to these activities?

Accepted Answer

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

Question 7

What aspect below best characterizes a Just-In-Time (JIT)inventory system?

Accepted Answer

A)  frequent deliveries of smaller quantities of items to the work centers 
B)  frequent deliveries of large quantities to be held at 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 smaller quantities of items to the work centers 
B)  frequent deliveries of large quantities to be held at 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 8

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 9

One of the threats associated with the process and activity of receiving and storing goods is

Accepted Answer

A)  errors in counting. 
B)  kickbacks. 
C)  requests for unnecessary items. 
D)  errors in vendor invoices. 
A)  errors in counting. 
B)  kickbacks. 
C)  requests for unnecessary items. 
D)  errors in vendor invoices.

Question 10

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 11

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 12

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 13

The purchasing manager at Folding Squid Technologies has responsibility for reviewing and authorizing purchase orders.Receiving reports are prepared by shipping and receiving based on the relevant purchase order(s).Purchase orders,receiving reports,and vendor invoices are reconciled by accounts payable,which authorizes payment.Which of the following would correct control weaknesses,if any,related to these activities?

Accepted Answer

A)  Vendor invoices should be reviewed by the purchasing manager to ensure that they are correct. 
B)  Accounts payable should authorize purchase orders. 
C)  Receiving reports should be reviewed and corrected by the purchasing manager. 
D)  Controls are adequate under the current system. 
A)  Vendor invoices should be reviewed by the purchasing manager to ensure that they are correct. 
B)  Accounts payable should authorize purchase orders. 
C)  Receiving reports should be reviewed and corrected by the purchasing manager. 
D)  Controls are adequate under the current system.

Question 14

Bob Chum is the sales manager at Folding Squid Technologies.At lunch with the company CEO,he complained that a recent shipment from a vendor had been unsatisfactory and so had to be returned.That required the purchasing manager to send a ________ to the supplier.

Accepted Answer

A)  purchase order 
B)  blanket purchase order 
C)  receiving report 
D)  debit memo 
A)  purchase order 
B)  blanket purchase order 
C)  receiving report 
D)  debit memo

Question 15

Identify possible problems associated with receiving goods and appropriate actions in response to the problems.

Accepted Answer

When a shipment of goods arrives,the qua

Question 16

The management at Sad Clown Pajamas,an Internet-based wholesaler,is considering a new inventory control system.The current system is inadequate because it results in stockouts that interrupt production and excess stocks of some materials that result in markdowns and high carrying costs.The new system,which will focus on reducing or completely eliminating carrying costs,will employ

Accepted Answer

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

Question 17

The receiving clerk at Folding Squid 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,if any,related to these activities?

Accepted Answer

A)  Vendor invoices should be approved for payment by the shipping clerk after the purchase order and receiving report are reconciled. 
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)  Controls are adequate under the current system. 
A)  Vendor invoices should be approved for payment by the shipping clerk after the purchase order and receiving report are reconciled. 
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)  Controls are adequate under the current system.

Question 18

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 19

When goods are being ordered from a vendor,which electronic files are either read or updated?

Accepted Answer

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

Question 20

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.

What is the best way to prevent the acceptance of unordered goods?

A voucher package should include

How can information technology be used to improve the vendor invoice approval process?

In the expenditure cycle,the majority of payments made are by check.What are some control issues related to payment of vendors by check?

Materials requirements planning (MRP)

What aspect below best characterizes a Just-In-Time (JIT)inventory system?

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

One of the threats associated with the process and activity of receiving and storing goods is

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

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

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

Bob Chum is the sales manager at Folding Squid Technologies.At lunch with the company CEO,he complained that a recent shipment from a vendor had been unsatisfactory and so had to be returned.That required the purchasing manager to send a ________ to the supplier.

Identify possible problems associated with receiving goods and appropriate actions in response to the problems.

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

When goods are being ordered from a vendor,which electronic files are either read or updated?

A disbursement voucher contains

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

Exam 13: The Expenditure Cycle: Purchasing to Cash Disbursements

What is the best way to prevent the acceptance of unordered goods?

A voucher package should include

How can information technology be used to improve the vendor invoice approval process?

In the expenditure cycle,the majority of payments made are by check.What are some control issues related to payment of vendors by check?

Materials requirements planning (MRP)

What aspect below best characterizes a Just-In-Time (JIT)inventory system?

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

One of the threats associated with the process and activity of receiving and storing goods is

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

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

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

Bob Chum is the sales manager at Folding Squid Technologies.At lunch with the company CEO,he complained that a recent shipment from a vendor had been unsatisfactory and so had to be returned.That required the purchasing manager to send a ________ to the supplier.

Identify possible problems associated with receiving goods and appropriate actions in response to the problems.

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

When goods are being ordered from a vendor,which electronic files are either read or updated?

A disbursement voucher contains

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