Question 1

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 invoiceE) C) and D)
F) None of the above

Question 2

Inventory control should be located in the warehouse.

Accepted Answer

A) True 
 B)False

Question 3

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 fileE) All of the above
F) A) and D)

Question 4

What function or department typically initiates a purchase in a merchandising business?

Accepted Answer

The inventory contro...

Question 5

Of the following duties,it is most important to separate

Accepted Answer

A)  warehouse from stores
B)  warehouse from inventory control
C)  accounts payable and accounts receivable
D)  purchasing and accounts receivableE) A) and D)
F) None of the above

Question 6

A purchasing system that employs electronic data interchange does not use a purchase order.

Accepted Answer

A) True 
 B)False

Question 7

Describe four tasks the purchases computer application performs automatically in the integrated purchases processing system.

Accepted Answer

1.The system reads the purchases requisi...

Question 8

The open purchase order file in the purchasing department is used to determine

Accepted Answer

A)  the quality of items a vendor ships
B)  the best vendor for a specific item
C)  the orders that have not been received
D)  the quantity of items receivedE) All of the above
F) B) and C)

Question 9

Which of the following tasks is not performed by the cash disbursement clerk?

Accepted Answer

A)  Review the supporting documents for completeness and accuracy.
B)  Prepare checks.
C)  Sign checks.
D)  Mark the supporting documents paid.E) A) and B)
F) A) and C)

Question 10

Describe the five procedures that are performed on items that are due in the integrated cash disbursements system.

Accepted Answer

1.Checks are automatically printed,signe...

Question 11

The purpose of the receiving report 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 deliveredE) C) and D)
F) A) and D)

Question 12

When a cash disbursement in payment of an accounts payable is recorded

Accepted Answer

A)  the liability account is increased
B)  the income statement is changed
C)  the cash account is unchanged
D)  the liability account is decreasedE) None of the above
F) A) and D)

Question 13

If accounts payable receives an invoice directly from the supplier,it needs to be reconciled with the purchase order and receiving report.

Accepted Answer

A) True 
 B)False

Question 14

In a merchandising firm,authorization for the purchase of inventory is the responsibility of

Accepted Answer

A)  inventory control
B)  purchasing
C)  accounts payable
D)  cash disbursementsE) A) and B)
F) A) and C)

Question 15

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 deliveredE) B) and D)
F) B) and C)

Question 16

Differentiate between a purchase requisition and a purchase order.

Accepted Answer

A purchase requisition is completed by t...

Question 17

Describe four tasks the receiving computer application performs automatically in the integrated purchases processing system.

Accepted Answer

1.A record is added to the receiving rep...

Question 18

What is the purpose of maintaining a valid vendor file?

Accepted Answer

Inventories should only be acquired from...

Question 19

In a merchandising firm,authorization for the payment of inventory is the responsibility of

Accepted Answer

A)  inventory control
B)  purchasing
C)  accounts payable
D)  cash disbursementsE) A) and D)
F) A) and C)

Question 20

What is the purpose of the purchase order?

Accepted Answer

The purchasing function receives the pur...

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

The purpose of the purchase requisition is to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In a merchandising firm,authorization for the purchase of inventory is the responsibility of

Correct AnswerverifiedShow Answer

A purchasing system that employs electronic data interchange does not use a purchase order.

Correct AnswerverifiedShow Answer

The open purchase order file in the purchasing department is used to determine

Correct AnswerverifiedShow Answer

Describe four tasks the purchases computer application performs automatically in the integrated purchases processing system.

Correct Answerverified1.The system reads the purchases requisi...View AnswerShow Answer

Differentiate between a purchase requisition and a purchase order.

Correct AnswerverifiedA purchase requisition is completed by t...View AnswerShow Answer

If accounts payable receives an invoice directly from the supplier,it needs to be reconciled with the purchase order and receiving report.

Correct AnswerverifiedShow Answer

What function or department typically initiates a purchase in a merchandising business?

Correct AnswerverifiedThe inventory contro...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 AnswerverifiedShow Answer

When a cash disbursement in payment of an accounts payable is recorded

Correct AnswerverifiedShow Answer

Describe four tasks the receiving computer application performs automatically in the integrated purchases processing system.

Correct Answerverified1.A record is added to the receiving rep...View AnswerShow Answer

Of the following duties,it is most important to separate

Correct AnswerverifiedShow Answer

Inventory control should be located in the warehouse.

Correct AnswerverifiedShow Answer

In a merchandising firm,authorization for the payment of inventory is the responsibility of

Correct AnswerverifiedShow Answer

Which of the following tasks is not performed by the cash disbursement clerk?

Correct AnswerverifiedShow Answer

Describe the five procedures that are performed on items that are due in the integrated cash disbursements system.

Correct Answerverified1.Checks are automatically printed,signe...View AnswerShow Answer

What is the purpose of maintaining a valid vendor file?

Correct AnswerverifiedInventories should only be acquired from...View AnswerShow Answer

The purpose of the receiving report is to

Correct AnswerverifiedShow Answer

What is the purpose of the purchase order?

Correct AnswerverifiedThe purchasing function receives the pur...View AnswerShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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1.The system reads the purchases requisi...
View Answer

Correct Answer
verified
A purchase requisition is completed by t...
View Answer

Correct Answer
verified

Correct Answer
verified
The inventory contro...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
1.A record is added to the receiving rep...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
1.Checks are automatically printed,signe...
View Answer

Correct Answer
verified
Inventories should only be acquired from...
View Answer

Correct Answer
verified

Correct Answer
verified
The purchasing function receives the pur...
View Answer