Question 1

Outline the key steps taken in the purchasing system?

Accepted Answer

Inventory control monitors inventory and...

Question 2

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 B

Question 3

The documents in a voucher packet include all of the following except

Accepted Answer

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

Question 4

Which internally generated document should be compared to the supplier's invoice to verify the price of an item?

Accepted Answer

The answer of Which internally generated document should be compared...

Question 5

Which of the following statements is not correct?

Accepted Answer

A)   the voucher system is used to improve control over cash disbursements
B)   the sum of the paid vouchers represents the voucher payable liability of the firm
C)   the voucher system permits the firm to consolidate payments of several invoices on one voucher
D)   many firms replace accounts payable with a voucher payable system B

Question 6

Why should the copy of a purchase order,which is sent to receiving,be a "blind" copy?

Accepted Answer

to force workers in ...

Question 7

A supplier invoice

Accepted Answer

A)   is included with the goods
B)   shows what was ordered even if all was not shipped
C)   is sent by vendor to accounts payable
D)   none of the above

Question 8

One reason for authorizing purchases is to enable efficient inventory management.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The document which will close the open purchase requisition file is the

Accepted Answer

A)   purchase order
B)   vendor invoice
C)   receiving report
D)   none of the above C

Question 11

List specific jobs that should be segregated in the cash disbursements system.

Accepted Answer

general ledger from accounts p...

Question 12

The inventory procurement process begins with the purchasing clerk preparing a purchase order.

Accepted Answer

A) True 
 B)False

Question 13

What are the steps taken in the cash disbursement system?

Accepted Answer

Accounts payable reviews the documents r...

Question 14

Copies of a purchase order are sent to all of the following except

Accepted Answer

A)   inventory control
B)   receiving
C)   general ledger
D)   accounts payable

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

Question 16

The financial value of a purchase is determined by reviewing the

Accepted Answer

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

Question 17

All of the following departments have a copy of the purchase order except

Accepted Answer

A)   the purchasing department
B)   the receiving department
C)   accounts payable
D)   general ledger

Question 18

What is the purpose of a receiving report?

Accepted Answer

Upon completion of the physical count an...

Question 19

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

Question 20

What are the key segregation of duties issues in purchasing and cash disbursements?

Accepted Answer

The key segregation of duties issue in p...

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

Outline the key steps taken in the purchasing system?

Correct AnswerverifiedInventory control monitors inventory and...View AnswerShow Answer

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

Correct AnswerverifiedB

The documents in a voucher packet include all of the following except

Correct AnswerverifiedShow Answer

Which internally generated document should be compared to the supplier's invoice to verify the price of an item?

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedB

Why should the copy of a purchase order,which is sent to receiving,be a "blind" copy?

Correct Answerverifiedto force workers in ...View AnswerShow Answer

A supplier invoice

Correct AnswerverifiedShow Answer

One reason for authorizing purchases is to enable efficient inventory management.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The document which will close the open purchase requisition file is the

Correct AnswerverifiedC

List specific jobs that should be segregated in the cash disbursements system.

Correct Answerverifiedgeneral ledger from accounts p...View AnswerShow Answer

The inventory procurement process begins with the purchasing clerk preparing a purchase order.

Correct AnswerverifiedShow Answer

What are the steps taken in the cash disbursement system?

Correct AnswerverifiedAccounts payable reviews the documents r...View AnswerShow Answer

Copies of a purchase order are sent to all of the following except

Correct AnswerverifiedShow Answer

Goods received are inspected and counted to

Correct AnswerverifiedShow Answer

The financial value of a purchase is determined by reviewing the

Correct AnswerverifiedShow Answer

All of the following departments have a copy of the purchase order except

Correct AnswerverifiedShow Answer

What is the purpose of a receiving report?

Correct AnswerverifiedUpon completion of the physical count an...View AnswerShow Answer

The purpose of the purchase requisition is to

Correct AnswerverifiedShow Answer

What are the key segregation of duties issues in purchasing and cash disbursements?

Correct AnswerverifiedThe key segregation of duties issue in p...View AnswerShow Answer

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Inventory control monitors inventory and...
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B

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B

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to force workers in ...
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C

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general ledger from accounts p...
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Accounts payable reviews the documents r...
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Upon completion of the physical count an...
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The key segregation of duties issue in p...
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