Question 1

Which of the following is generally not shown on a receiving report?

Accepted Answer

A)  price of the items 
B)  quantity of the items 
C)  purchase order number 
D)  counted and inspected by 
A)  price of the items 
B)  quantity of the items 
C)  purchase order number 
D)  counted and inspected by

Question 2

What is a key feature of materials requirements planning (MRP)?

Accepted Answer

A)  minimize or entirely eliminate carrying and stockout costs 
B)  reduce required inventory levels by scheduling production rather than estimating needs 
C)  determine the optimal reorder point 
D)  determine the optimal order size 
A)  minimize or entirely eliminate carrying and stockout costs 
B)  reduce required inventory levels by scheduling production rather than estimating needs 
C)  determine the optimal reorder point 
D)  determine the optimal order size

Question 3

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 4

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 5

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 ensuring that these costs are minimized.The new inventory control system will likely employ

Accepted Answer

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

Question 6

Evaluated receipt settlement 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.

Question 7

________ 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 8

Anong Mali is the purchasing manager at Wattana Technologies.She 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 related to these activities?

Accepted Answer

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

Question 9

Identify ten threats and applicable control procedures in the expenditure cycle.

Accepted Answer

Answers can include the following inform

Question 10

Identify the department below that should not be able to submit a purchase requisition.

Accepted Answer

A)  Marketing 
B)  Production 
C)  Inventory Control 
D)  None of the above 
A)  Marketing 
B)  Production 
C)  Inventory Control 
D)  None of the above

Question 11

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 12

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 13

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.

Question 14

Ideally,inventory purchases occur in response to ________ in a JIT inventory system.

Accepted Answer

A)  customer demand 
B)  optimal demand 
C)  forecast demand 
D)  supplier demand 
A)  customer demand 
B)  optimal demand 
C)  forecast demand 
D)  supplier demand

Question 15

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 16

Why would a firm perform ABC cost analysis?

Accepted Answer

A)  to identify the best inventory supplier 
B)  to reconcile accounts payable 
C)  to prioritize physical inventory counts 
D)  to verify production quality 
A)  to identify the best inventory supplier 
B)  to reconcile accounts payable 
C)  to prioritize physical inventory counts 
D)  to verify production quality

Question 17

Which of the following is not an activity performed in the expenditure cycle?

Accepted Answer

A)  ordering 
B)  receiving 
C)  cash disbursement 
D)  shipping 
A)  ordering 
B)  receiving 
C)  cash disbursement 
D)  shipping

Question 18

Define and describe the EOQ approach to inventory management.

Accepted Answer

EOQ (economic order quantity)is the trad

Question 19

Ngai Nhung is the sales manager at Hung Technologies.At lunch with the company CEO,Ngai complained that a recent shipment from a vendor had been unsatisfactory and was returned.As a result,Hung's purchasing manager needed to send a ________ to the supplier.

Accepted Answer

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

Question 20

What control would best mitigate the threat of paying an invoice twice?

Accepted Answer

A)  never authorizing payment of a photocopy of an invoice 
B)  double-checking mathematical accuracy of invoices 
C)  approval of purchase orders 
D)  maintaining adequate perpetual inventory records 
A)  never authorizing payment of a photocopy of an invoice 
B)  double-checking mathematical accuracy of invoices 
C)  approval of purchase orders 
D)  maintaining adequate perpetual inventory records

Which of the following is generally not shown on a receiving report?

What is a key feature of materials requirements planning (MRP)?

EFT payments are generally performed by

Evaluated receipt settlement increases efficiency by

________ attempts to minimize or eliminate carrying and stockout costs.

Identify ten threats and applicable control procedures in the expenditure cycle.

Identify the department below that should not be able to submit a purchase requisition.

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

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

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

Ideally,inventory purchases occur in response to ________ in a JIT inventory system.

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?

Why would a firm perform ABC cost analysis?

Which of the following is not an activity performed in the expenditure cycle?

Define and describe the EOQ approach to inventory management.

Ngai Nhung is the sales manager at Hung Technologies.At lunch with the company CEO,Ngai complained that a recent shipment from a vendor had been unsatisfactory and was returned.As a result,Hung's purchasing manager needed to send a ________ to the supplier.

What control would best mitigate the threat of paying an invoice twice?

Accounting Information Systems: an Overview

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 is generally not shown on a receiving report?

What is a key feature of materials requirements planning (MRP)?

EFT payments are generally performed by

Evaluated receipt settlement increases efficiency by

________ attempts to minimize or eliminate carrying and stockout costs.

Identify ten threats and applicable control procedures in the expenditure cycle.

Identify the department below that should not be able to submit a purchase requisition.

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

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

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

Ideally,inventory purchases occur in response to ________ in a JIT inventory system.

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?

Why would a firm perform ABC cost analysis?

Which of the following is not an activity performed in the expenditure cycle?

Define and describe the EOQ approach to inventory management.

Ngai Nhung is the sales manager at Hung Technologies.At lunch with the company CEO,Ngai complained that a recent shipment from a vendor had been unsatisfactory and was returned.As a result,Hung's purchasing manager needed to send a ________ to the supplier.

What control would best mitigate the threat of paying an invoice twice?

Accounting Information Systems: an Overview

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