Question 1

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 significantl

Question 2

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 3

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 4

Identify item below that is the biggest purchasing function cost driver.

Accepted Answer

A)  the number of purchase requisitions processed 
B)  the number of suppliers used 
C)  the number of purchase orders processed 
D)  the quantity of items ordered 
A)  the number of purchase requisitions processed 
B)  the number of suppliers used 
C)  the number of purchase orders processed 
D)  the quantity of items ordered

Question 5

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 6

If duties are properly segregated,the authorization function is performed by ________,the recording function is performed by ________,and cash handling is performed by the ________.

Accepted Answer

A)  accounts payable; purchasing; cashier 
B)  purchasing; accounts payable; cashier 
C)  purchasing; cashier; accounts payable 
D)  purchasing; accounts payable; treasurer 
A)  accounts payable; purchasing; cashier 
B)  purchasing; accounts payable; cashier 
C)  purchasing; cashier; accounts payable 
D)  purchasing; accounts payable; treasurer

Question 7

Procurement cards differ from corporate credit cards in which of the following ways?

Accepted Answer

A)  Credit limits can be set for procurement cards, but not corporate credit cards. 
B)  Credit cards can be used to make purchases without an explicit sign off by supervisors, but procurement cards require a sign off. 
C)  Procurement cards can only be used with approved vendors, but credit cards can be used anywhere. 
D)  Procurement card invoices are sent separately for each card, whereas corporate credit cards are consolidated into a single invoice. 
A)  Credit limits can be set for procurement cards, but not corporate credit cards. 
B)  Credit cards can be used to make purchases without an explicit sign off by supervisors, but procurement cards require a sign off. 
C)  Procurement cards can only be used with approved vendors, but credit cards can be used anywhere. 
D)  Procurement card invoices are sent separately for each card, whereas corporate credit cards are consolidated into a single invoice.

Question 8

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 9

Once a vendor is selected for a product,the vendor's identity is recorded in the

Accepted Answer

A)  purchase requisition transaction file. 
B)  purchase requisition master file. 
C)  inventory transaction file. 
D)  inventory master file. 
A)  purchase requisition transaction file. 
B)  purchase requisition master file. 
C)  inventory transaction file. 
D)  inventory master file.

Question 10

Which of the following controls would be the least effective in preventing paying the same invoice twice?

Accepted Answer

A)  Only pay from original invoices. 
B)  Cancel each document in the voucher package once the check is prepared and mailed. 
C)  Only pay vendor invoices that have been matched and reconciled to a purchase order and a receiving report. 
D)  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. 
A)  Only pay from original invoices. 
B)  Cancel each document in the voucher package once the check is prepared and mailed. 
C)  Only pay vendor invoices that have been matched and reconciled to a purchase order and a receiving report. 
D)  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.

Question 11

Evaluated receipt settlement approves payment of vendor invoices after reconciling the purchase order and the

Accepted Answer

A)  receiving report. 
B)  vendor invoice. 
C)  sales invoice. 
D)  disbursement voucher. 
A)  receiving report. 
B)  vendor invoice. 
C)  sales invoice. 
D)  disbursement voucher.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 15

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.

Question 16

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 17

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 is 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 is correct.

Question 18

Duc An Incorporated provides free coffee to employees.Starbucks delivers coffee packages,sugar,creamer,and filters each week.Every month,Starbucks sends Duc An an invoice.This arrangement is best described as a

Accepted Answer

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

Question 19

Under what conditions is MRP more suitable than JIT and vice versa?

Accepted Answer

MRP systems schedule production based on

Question 20

Which of the following would probably be the least effective control to mitigate the risk of paying a phony invoice payable for inventory purchases that were never made?

Accepted Answer

A)  Only pay from original invoices. 
B)  Require three-way match for all inventory purchase invoices. 
C)  Cancel all invoices and supporting documentation when paid. 
D)  Establish strict access and authorization controls for the approved vendor master file. 
A)  Only pay from original invoices. 
B)  Require three-way match for all inventory purchase invoices. 
C)  Cancel all invoices and supporting documentation when paid. 
D)  Establish strict access and authorization controls for the approved vendor master file.

Exam 13: The Expenditure Cycle: Purchasing to Cash Disbursements

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

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

Identify item below that is the biggest purchasing function cost driver.

The traditional approach to inventory management generally involves

If duties are properly segregated,the authorization function is performed by ________,the recording function is performed by ________,and cash handling is performed by the ________.

Procurement cards differ from corporate credit cards in which of the following ways?

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

Once a vendor is selected for a product,the vendor's identity is recorded in the

Which of the following controls would be the least effective in preventing paying the same invoice twice?

Evaluated receipt settlement approves payment of vendor invoices after reconciling the purchase order and the

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

A disbursement voucher contains

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

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

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?

Materials requirements planning (MRP)

Duc An Incorporated provides free coffee to employees.Starbucks delivers coffee packages,sugar,creamer,and filters each week.Every month,Starbucks sends Duc An an invoice.This arrangement is best described as a

Under what conditions is MRP more suitable than JIT and vice versa?

Which of the following would probably be the least effective control to mitigate the risk of paying a phony invoice payable for inventory purchases that were never made?

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

If duties are properly segregated,the authorization function is performed by ,the recording function is performed by ,and cash handling is performed by the .