Question 1

The purpose of the purchase requisition is to

Accepted Answer

A)  order goods from vendors 
B)  record receipt of goods from vendors 
C)  authorize the purchasing department to order goods 
D)  bill for goods delivered 
A)  order goods from vendors 
B)  record receipt of goods from vendors 
C)  authorize the purchasing department to order goods 
D)  bill for goods delivered

Question 2

The check digit control will provide control over accessing the wrong accounts.

Accepted Answer

A) True 
 B)False

Question 3

The reason that a blind copy of the purchase order is sent to receiving is to

Accepted Answer

A)  inform receiving when a shipment is due 
B)  force a count of the items delivered 
C)  inform receiving of the type,quantity,and price of items to be delivered 
D)  require that the goods delivered are inspected 
A)  inform receiving when a shipment is due 
B)  force a count of the items delivered 
C)  inform receiving of the type,quantity,and price of items to be delivered 
D)  require that the goods delivered are inspected

Question 4

What internal accounting control(s)would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent,he claims the goods were never received.

Accepted Answer

receiving records it

Question 5

In a real-time processing system with a high number of transactions,the best and most practical control over cash disbursements is to have

Accepted Answer

A)  all checks manually signed by the treasurer 
B)  all checks signed by check-signing equipment 
C)  checks over a certain dollar amount manually signed by the treasurer 
D)  checks over a certain dollar amount manually signed by the cash disbursements clerk 
A)  all checks manually signed by the treasurer 
B)  all checks signed by check-signing equipment 
C)  checks over a certain dollar amount manually signed by the treasurer 
D)  checks over a certain dollar amount manually signed by the cash disbursements clerk

Question 6

Inspection of shipments in the receiving department would be improved if the documentation showed the value of the inventory.

Accepted Answer

A) True 
 B)False

Question 7

The warehouse is responsible for updating the inventory subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 8

The purchase order

Accepted Answer

A)  is the source document to make an entry into the accounting records 
B)  indicates item description,quantity,and price 
C)  is prepared by the inventory control department 
D)  is approved by the end-user department 
A)  is the source document to make an entry into the accounting records 
B)  indicates item description,quantity,and price 
C)  is prepared by the inventory control department 
D)  is approved by the end-user department

Question 9

When a trading partner agreement is in place,the traditional three way match may be eliminated.

Accepted Answer

A) True 
 B)False

Question 10

A three way match involves a purchase order,a purchase requisition,and an invoice.

Accepted Answer

A) True 
 B)False

Question 11

The use of inventory reorder points suggests the need to obtain specific authorization.

Accepted Answer

A) True 
 B)False

Question 12

Differentiate between a purchase requisition and a purchase order.

Accepted Answer

A purchase requisition is completed by t

Question 13

To maintain a good credit rating and to optimize cash management,cash disbursements should arrive at the vendor's place of business

Accepted Answer

A)  as soon as possible 
B)  on the due date 
C)  on the discount date 
D)  by the end of the month 
A)  as soon as possible 
B)  on the due date 
C)  on the discount date 
D)  by the end of the month

Question 14

The purpose of the purchase order is to

Accepted Answer

A)  order goods from vendors 
B)  record receipt of goods from vendors 
C)  authorize the purchasing department to order goods 
D)  approve payment for goods received 
A)  order goods from vendors 
B)  record receipt of goods from vendors 
C)  authorize the purchasing department to order goods 
D)  approve payment for goods received

Question 15

Goods received are inspected and counted to

Accepted Answer

A)  determine that the goods are in good condition 
B)  determine the quantity of goods received 
C)  preclude payment for goods not received or received in poor condition 
D)  all of the above 
A)  determine that the goods are in good condition 
B)  determine the quantity of goods received 
C)  preclude payment for goods not received or received in poor condition 
D)  all of the above

Question 16

When searching for unrecorded liabilities at the end of an accounting period,the accountant would search all of the files except

Accepted Answer

A)  the purchase requisition file 
B)  the cash receipts file 
C)  the purchase order file 
D)  the receiving report file 
A)  the purchase requisition file 
B)  the cash receipts file 
C)  the purchase order file 
D)  the receiving report file

Question 17

Usually the open voucher payable file is organized by

Accepted Answer

A)  vendor 
B)  payment due date 
C)  purchase order number 
D)  transaction date 
A)  vendor 
B)  payment due date 
C)  purchase order number 
D)  transaction date

Question 18

Because of time delays between receiving inventory and making the journal entry

Accepted Answer

A)  liabilities are usually understated 
B)  liabilities are usually overstated 
C)  liabilities are usually correctly stated 
D)  none of the above 
A)  liabilities are usually understated 
B)  liabilities are usually overstated 
C)  liabilities are usually correctly stated 
D)  none of the above

Question 19

What are the key authorization issues in purchasing and cash disbursements?

Accepted Answer

Inventory control monitors inventory and

Question 20

When purchasing inventory,which document usually triggers the recording of a liability?

Accepted Answer

A)  purchase requisition 
B)  purchase order 
C)  receiving report 
D)  supplier's invoice 
A)  purchase requisition 
B)  purchase order 
C)  receiving report 
D)  supplier's invoice

The purpose of the purchase requisition is to

The check digit control will provide control over accessing the wrong accounts.

The reason that a blind copy of the purchase order is sent to receiving is to

What internal accounting control(s)would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent,he claims the goods were never received.

In a real-time processing system with a high number of transactions,the best and most practical control over cash disbursements is to have

Inspection of shipments in the receiving department would be improved if the documentation showed the value of the inventory.

The warehouse is responsible for updating the inventory subsidiary ledger.

The purchase order

When a trading partner agreement is in place,the traditional three way match may be eliminated.

A three way match involves a purchase order,a purchase requisition,and an invoice.

The use of inventory reorder points suggests the need to obtain specific authorization.

Differentiate between a purchase requisition and a purchase order.

To maintain a good credit rating and to optimize cash management,cash disbursements should arrive at the vendor's place of business

The purpose of the purchase order is to

Goods received are inspected and counted to

When searching for unrecorded liabilities at the end of an accounting period,the accountant would search all of the files except

Usually the open voucher payable file is organized by

Because of time delays between receiving inventory and making the journal entry

What are the key authorization issues in purchasing and cash disbursements?

When purchasing inventory,which document usually triggers the recording of a liability?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part Ii: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger,financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

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Exam 5: The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The purpose of the purchase requisition is to

The check digit control will provide control over accessing the wrong accounts.

The reason that a blind copy of the purchase order is sent to receiving is to

What internal accounting control(s)would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent,he claims the goods were never received.

In a real-time processing system with a high number of transactions,the best and most practical control over cash disbursements is to have

Inspection of shipments in the receiving department would be improved if the documentation showed the value of the inventory.

The warehouse is responsible for updating the inventory subsidiary ledger.

The purchase order

When a trading partner agreement is in place,the traditional three way match may be eliminated.

A three way match involves a purchase order,a purchase requisition,and an invoice.

The use of inventory reorder points suggests the need to obtain specific authorization.

Differentiate between a purchase requisition and a purchase order.

To maintain a good credit rating and to optimize cash management,cash disbursements should arrive at the vendor's place of business

The purpose of the purchase order is to

Goods received are inspected and counted to

When searching for unrecorded liabilities at the end of an accounting period,the accountant would search all of the files except

Usually the open voucher payable file is organized by

Because of time delays between receiving inventory and making the journal entry

What are the key authorization issues in purchasing and cash disbursements?

When purchasing inventory,which document usually triggers the recording of a liability?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part Ii: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger,financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

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