Question 1

Purchase returns and allowances usually occur at the point of inspecting and counting the goods or at the point of validating vendor invoices.

Accepted Answer

A) True 
 B)False  True

Question 2

A company using a centralized database approach to data management might not maintain a relational table for ACCOUNTS PAYABLE. Rather, accounts payable balances at any point in time could be computed as the difference between the relations for which of the following continuous events?

Accepted Answer

A)   PURCHASE_ORDERS and INVENTORY_RECEIPTS
B)   INVENTORY and INVENTORY_RECEIPTS
C)   VALID_ INVOICES and INVENTORY_RECEIPTS
D)   VALID_ INVOICES and CASH_DISBURSEMENTS D

Question 3

The ______________________________ is an interacting structure of people, equipment, activities, and controls that is designed to accomplish the handling of repetitive work routines of the AP department and the cashier, support their decision needs, and assist in the preparation of internal and external reports.

Accepted Answer

AP/CD process

Question 4

The ______________________________ data is a repository of all unpaid vendor invoices.

Accepted Answer

The answer of The ______________________________ data is a repository of...

Question 5

Within the make payment process, the three sub-processes are "Prepare proposed payments", "Select and record payments," and ______________________________.

Accepted Answer

The answer of Within the make payment process, the three...

Question 6

The control plan ______________________________ requires that the authority for recording a vendor invoice come from the purchase order and receiving report created by entities other than the entity that records the vendor invoice.

Accepted Answer

The answer of The control plan ______________________________ requires that the...

Question 7

Payments not typically supported by invoices include:

Accepted Answer

A)   payroll
B)   income taxes
C)   investments
D)   all of the above

Question 8

TB Figure 13.9 is the control matrix for the accounts payable/cash disbursements process presented in Chapter 13, but with certain items omitted. In the matrix, each omission is indicated by a box. Jumbled lists of the omitted items are as follows:
   Required:
Complete the matrix in parts 1 and 2 of TB Figure 13.9 below by placing one of the numbers, 1 through 14 from the above lists, in each empty box.

Accepted Answer

The answer of TB Figure 13.9 is the control matrix...

Question 9

The Level 0 diagram of the AP/CD Process contains the two process bubbles depicting the two major logical steps in the process: Establish payable and Approve checks.

Accepted Answer

A) True 
 B)False

Question 10

The document one business sends to another business that identifies the amount to be paid is:

Accepted Answer

A)   check
B)   purchase requisition
C)   vendor invoice
D)   disbursement voucher

Question 11

The cashier usually reports to the controller.

Accepted Answer

A) True 
 B)False

Question 12

The ______________________________ data shows, in chronological sequence, the details of each cash payment made.

Accepted Answer

The answer of The ______________________________ data shows, in chronological sequence,...

Question 13

The control plan ______________________________ matches records of cash disbursements to bank records to ensure that all disbursements actually made by the bank were authorized and accurate.

Accepted Answer

The answer of The control plan ______________________________ matches records of...

Question 14

When it is time to make a payment, an approved voucher is sent to the accounts payable department.

Accepted Answer

A) True 
 B)False

Question 15

In a relational table for VALID_INVOICES, the primary key would be the vendor number.

Accepted Answer

A) True 
 B)False

Question 16

Usually the theft of cash entails ________________ or fraudulent _________________________.

Accepted Answer

The answer of Usually the theft of cash entails ________________...

Question 17

Which control is most likely to address the goal of input completeness?

Accepted Answer

A)   agreement of run-to-run totals
B)   digital signature
C)   independent validation of vendor invoice
D)   tickler file of open purchase orders and receiving reports

Question 18

To ensure that a vendor invoice is recorded accurately and that items on the invoice were ordered and received requires that we ______________________________.

Accepted Answer

The answer of To ensure that a vendor invoice is...

Question 19

The notification of an obligation to pay a vendor for merchandise that was ordered and received is known as a(n) ______________________________.

Accepted Answer

The answer of The notification of an obligation to pay...

Question 20

In a voucher system, the data flow between the originating department and the process "prepare disbursement voucher" typically is:

Accepted Answer

A)   the disbursement voucher
B)   the payment notification
C)   the payment request
D)   the check

Exam 13: The Accounts Payablecash Disbursements Apcd Process

Purchase returns and allowances usually occur at the point of inspecting and counting the goods or at the point of validating vendor invoices.

A company using a centralized database approach to data management might not maintain a relational table for ACCOUNTS PAYABLE. Rather, accounts payable balances at any point in time could be computed as the difference between the relations for which of the following continuous events?

The ______________________________ data is a repository of all unpaid vendor invoices.

Within the make payment process, the three sub-processes are "Prepare proposed payments", "Select and record payments," and ______________________________.

The control plan ______________________________ requires that the authority for recording a vendor invoice come from the purchase order and receiving report created by entities other than the entity that records the vendor invoice.

Payments not typically supported by invoices include:

The Level 0 diagram of the AP/CD Process contains the two process bubbles depicting the two major logical steps in the process: Establish payable and Approve checks.

The document one business sends to another business that identifies the amount to be paid is:

The cashier usually reports to the controller.

The ______________________________ data shows, in chronological sequence, the details of each cash payment made.

The control plan ______________________________ matches records of cash disbursements to bank records to ensure that all disbursements actually made by the bank were authorized and accurate.

When it is time to make a payment, an approved voucher is sent to the accounts payable department.

In a relational table for VALID_INVOICES, the primary key would be the vendor number.

Usually the theft of cash entails or fraudulent _________.

Which control is most likely to address the goal of input completeness?

To ensure that a vendor invoice is recorded accurately and that items on the invoice were ordered and received requires that we ______________________________.

The notification of an obligation to pay a vendor for merchandise that was ordered and received is known as a(n) ______________________________.

In a voucher system, the data flow between the originating department and the process "prepare disbursement voucher" typically is: