Question 1

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 2

A reverse auction would likely be best suited to the purchase of

Accepted Answer

A)  central processing units (CPUs). 
B)  soybeans. 
C)  designer clothing. 
D)  automobiles. 
A)  central processing units (CPUs). 
B)  soybeans. 
C)  designer clothing. 
D)  automobiles.

Question 3

Once a purchase request is approved,what is the next step?

Accepted Answer

A)  The system creates a purchase order. 
B)  The accounts payable department approves the purchase request, creating a purchase order. 
C)  The inventory master file is accessed to find the preferred supplier(s). 
D)  The department that created the purchase request may buy the requested item(s). 
A)  The system creates a purchase order. 
B)  The accounts payable department approves the purchase request, creating a purchase order. 
C)  The inventory master file is accessed to find the preferred supplier(s). 
D)  The department that created the purchase request may buy the requested item(s).

Question 4

When would an MRP inventory approach be a preferred to a JIT inventory approach?

Accepted Answer

A)  when a product has a short life cycle 
B)  when demand for inventory is fairly predictable 
C)  when demand for inventory is very unpredictable 
D)  MRP is always a preferred method over JIT. 
A)  when a product has a short life cycle 
B)  when demand for inventory is fairly predictable 
C)  when demand for inventory is very unpredictable 
D)  MRP is always a preferred method over JIT.

Question 5

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

Question 6

Requiring all packing slips be reconciled to purchase orders before accepting a delivery of inventory would be most likely to prevent which of the following situations?

Accepted Answer

A)  A supplier delivers more inventory than ordered at the end of the year and sends an invoice for the total quantity delivered. 
B)  An employee mails a fake invoice to the company, which is then paid. 
C)  The inventory records are incorrectly updated when a receiving department employee enters the wrong product number on the receiving report. 
D)  Receiving department employees steal inventory and then claim the inventory was received and delivered to the warehouse. 
A)  A supplier delivers more inventory than ordered at the end of the year and sends an invoice for the total quantity delivered. 
B)  An employee mails a fake invoice to the company, which is then paid. 
C)  The inventory records are incorrectly updated when a receiving department employee enters the wrong product number on the receiving report. 
D)  Receiving department employees steal inventory and then claim the inventory was received and delivered to the warehouse.

Question 7

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

Question 8

Which electronic files are either read or updated when goods are ordered from a vendor?

Accepted Answer

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

Question 9

A JIT inventory system would be especially useful for a company that manufactures

Accepted Answer

A)  toys associated with new movie releases. 
B)  toothpaste. 
C)  alarm clocks. 
D)  motor oil. 
A)  toys associated with new movie releases. 
B)  toothpaste. 
C)  alarm clocks. 
D)  motor oil.

Question 10

Identify one way to improve the accuracy of inventory records that use a perpetual inventory approach

Accepted Answer

A)  use of an ERP system 
B)  require the accounting department to calculate cost of goods sold periodically 
C)  use IT to eliminate the need for manual data entry 
D)  use of an MRP inventory system 
A)  use of an ERP system 
B)  require the accounting department to calculate cost of goods sold periodically 
C)  use IT to eliminate the need for manual data entry 
D)  use of an MRP inventory system

Question 11

MacDougalKids is a mid-sized manufacturer of organic baby food.MacDougalKids uses a JIT 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 12

Which of the following would be the best control to prevent receiving department employees from stealing inventory and claiming the ordered quantity wasn't received from the vendor?

Accepted Answer

A)  Reconcile quantity on packing slip to physical count when accepting delivery. 
B)  Restrict physical access to the receiving area. 
C)  Require all deliveries be made at the receiving area. 
D)  Require dual signatures on the move ticket when receiving delivers the inventory to the warehouse. 
A)  Reconcile quantity on packing slip to physical count when accepting delivery. 
B)  Restrict physical access to the receiving area. 
C)  Require all deliveries be made at the receiving area. 
D)  Require dual signatures on the move ticket when receiving delivers the inventory to the warehouse.

Question 13

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 orders are placed with sufficient lead time to prevent stockouts by using

Accepted Answer

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

Question 14

A receiving clerk notes that a delivery of 10 units has been received,but the purchase order specified 12 units.A debit memo will need to be prepared to adjust for the difference between the quantity ordered and received.Who should prepare this document?

Accepted Answer

A)  the receiving clerk 
B)  the controller 
C)  the vendor 
D)  the purchasing department manager 
A)  the receiving clerk 
B)  the controller 
C)  the vendor 
D)  the purchasing department manager

Question 15

The ________ specifies the point at which inventory is needed.

Accepted Answer

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

Question 16

Which of the following threats is not specific to the purchase requisition process of the expenditure cycle?

Accepted Answer

A)  stockouts 
B)  purchasing from unauthorized vendors 
C)  requisitioning goods not needed 
D)  All of the above are threats in the purchase requisition process. 
A)  stockouts 
B)  purchasing from unauthorized vendors 
C)  requisitioning goods not needed 
D)  All of the above are threats in the purchase requisition process.

Question 17

Which of the following is not a common control for ensuring inventory is secure and inventory counts are accurate?

Accepted Answer

A)  control of physical access to the inventory storage areas 
B)  transfers of inventory with proper documentation 
C)  sending "blind" copies of purchase orders to inventory control for data entry 
D)  making physical counts of inventory at least once per year 
A)  control of physical access to the inventory storage areas 
B)  transfers of inventory with proper documentation 
C)  sending "blind" copies of purchase orders to inventory control for data entry 
D)  making physical counts of inventory at least once per year

Question 18

What is the best way to prevent the acceptance of goods that were never ordered?

Accepted Answer

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

Question 19

What types of decision-making and strategic information should the AIS provide in the expenditure cycle?

Accepted Answer

The AIS should provide decision making i

Question 20

A major cost in the purchasing function is the number of purchase orders processed.One technique that may reduce purchasing-related expenses is to have suppliers compete with each other to meet demand at the lowest price.The name of this technique is

Accepted Answer

A)  an EDI auction. 
B)  a trading exchange. 
C)  a reverse auction. 
D)  a supplier consortium. 
A)  an EDI auction. 
B)  a trading exchange. 
C)  a reverse auction. 
D)  a supplier consortium.

Exam 13: The Expenditure Cycle: Purchasing to Cash Disbursements

What is not an advantage of using disbursement vouchers?

A reverse auction would likely be best suited to the purchase of

Once a purchase request is approved,what is the next step?

When would an MRP inventory approach be a preferred to a JIT inventory approach?

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.

Requiring all packing slips be reconciled to purchase orders before accepting a delivery of inventory would be most likely to prevent which of the following situations?

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

Which electronic files are either read or updated when goods are ordered from a vendor?

A JIT inventory system would be especially useful for a company that manufactures

Identify one way to improve the accuracy of inventory records that use a perpetual inventory approach

MacDougalKids is a mid-sized manufacturer of organic baby food.MacDougalKids uses a JIT inventory management approach.Which of the following factors would likely be least important when selecting inventory suppliers?

Which of the following would be the best control to prevent receiving department employees from stealing inventory and claiming the ordered quantity wasn't received from the vendor?

A receiving clerk notes that a delivery of 10 units has been received,but the purchase order specified 12 units.A debit memo will need to be prepared to adjust for the difference between the quantity ordered and received.Who should prepare this document?

The ________ specifies the point at which inventory is needed.

Which of the following threats is not specific to the purchase requisition process of the expenditure cycle?

Which of the following is not a common control for ensuring inventory is secure and inventory counts are accurate?

What is the best way to prevent the acceptance of goods that were never ordered?

What types of decision-making and strategic information should the AIS provide in the expenditure cycle?

A major cost in the purchasing function is the number of purchase orders processed.One technique that may reduce purchasing-related expenses is to have suppliers compete with each other to meet demand at the lowest price.The name of this technique is

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

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