Quiz
Accounting
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Perguntas do quiz (152)
1The credit manager reports to the __________ and the treasurer reports to the
__________.- Acontroller; vice president of finance
- Btreasurer; controller
- Cmarketing manager; vice president of finance
- Dtreasurer; vice president of
finance
2The revenue cycle is a recurring set of business activities and related information
processing operations associated with providing goods and services to customers and
collecting cash in payment for those sales. With whom is the primary external
exchange of information?- Acompetitors
- Bcreditors
- Ccustomers
- Dmarketing organization
3What is the primary objective of the revenue cycle?
- Ato maximize revenue and minimize expense
- Bto reduce outstanding accounts receivable balances through increased cash
sales - Cto provide the right product in the right place at the right time at the right price
- Dto sell as much product as possible and/or to maximize service billings
4To accomplish the objectives set forth in the revenue cycle, a number of key
management decisions must be addressed. Which of the decisions below is
not ordinarily found as part of the revenue cycle?- AWhat credit terms should be offered?
- BHow often should accounts receivable be subjected to audit?
- CHow can customer payments be processed to m
aximize cash flows? - DWhat are the optimal prices for each product or service?
5Which of the activities listed below is not part of the revenue cycle?
- Asales order entry
- Bshipping
- Creceiving
- Dbilling
6In addition to the sales order entry process there are three other processes in the
revenue cycle. Which of the following is not one of them?- Ashipping
- Bbilling
- Cgeneral ledger
- Dcash collections
7One way to improve sales order entry efficiency is by allowing customers to enter
sales order data themselves. This can be accomplished for both in-store, mail order, and Web site sales. Such interactive sales order entry systems are referred to as- Abulletin boards
- Bsmorgasbords
- Ccatalogue boards
- Dchoiceboards
8One way to improve sales order entry efficiency is by allowing customers to enter sales order data themselves. For example, retail stores would send their orders
directly to a sales order system in a format that would eliminate the need for data
entry. This could be achieved using- AVMI
- BEDI
- CPOS
- DVAN
9Matching customer accounts and inventory item numbers to the information in the
customer and inventory master files is an example of a- Acompleteness test
- Bfield check
- Creasonabless test
- Dvalidity check
10During the sales order entry process, a __________ is performed to compare the
quantity ordered with the standard amounts normally ordered- Acompleteness test
- Bredundant data check
- Cfield check
- Dreasonableness test
11During the sales order entry process, a __________ is performed to verify that each
transaction record contains all appropriate data items.- Acompleteness test
- Bredunddant data check
- Cfield check
- Dreasonableness test
12A number of edit checks should be performed to ensure that all of the data required to
process an order have been collected and accurately recorded. The edit check that compares a quantity being ordered to past history for that item and customer is called- Aa validity check
- Ba reasonableness test
- Ca completeness test
- Da limit check
13In the revenue cycle, a customer places an order for a certain product. Before the
order is checked for inventory availability, what step should be taken?- AThe customer's credit should be checked for a sale on account.
- BThe sales order should be created and written to a file.
- CShipping should be notified of an order in process.
- DA picking list should be generated for the warehouse.
14How is credit approval generally handled for well-established customers with a documented payment history?
- Aspecific authorization by the credit manager
- Broutine approval is usually granted
- Ca new credit application is taken
- Da formal credit check is made for each sale
15The maximum allowable account balance for a given customer is called the
- Acredit checkpoint
- Bcredit limit
- Creorder point
- Dbackorder point
16What is the normal procedure for new customers or customers making a purchase that
causes their credit limit to be exceeded?- Aroutine approval is granted without authorization
- Bspecific approval must be granted by the credit manager
- Creject the sale in either case without question
- Dcheck the credit bureau for a credit rating on the customer
17Why should inventory quantities on hand be checked before a sale is actually made?
- Ato inform the costumer about availibility and delivery times
- Bto know which items must be back ordered
- Cto inform inventory control of mistakes in the inventory records
- DA and B above
18Mucho Regalia manufactures clothing items. When an inventory item that is not in
stock has been ordered by a customer, a back order is sent to the- Aproduction department
- Bpurchasing department
- Cbilling department
- DA and B above
19Customer inquiries during the sales order process are best handled by
- Aa sales order and customer service person
- Baccounting personnel
- Cthe credit manager
- DA and C Above
20Responding to customer inquiries and general customer service is an important aspect
in the revenue cycle. Since customer service is so important, software programs have
been created to help manage this function. These special software packages are
called- AEDI systems
- BPOS systems
- CVMI systems
- DCRM systems
21Another essential part of the revenue cycle is filling customer orders and shipping
merchandise to customers. Automating warehouse systems cut costs, improve
efficiency, and enable more customer-responsive shipments. The essential element(s) required for an automated perpetual inventory system consist(s) of- Aconveyor belts and forklifts
- Bconveyor belts and forklifts equipped with RFDC
- Cconveyor belts
- Dbar-code scanners
22Once a customer order has been approved, which document is produced next?
- Athe sales invoice
- Bthe packing slip
- Cthe remittance advice
- Dthe purchase order
23In a shipping department, a __________ is a legal contract that defines responsibility
for goods that are in transit.- Apacking slip
- Bbill of lading
- Cpicking list
- Dback order
24The __________ is a legal contract that defines responsibility for the goods that are in
transit.- Abill of lading
- Bfreight bill
- Csales order
- Dorder acknowledgement
25Two documents usually accompany goods sent from the vendor to the customer. What are these two documents?
- Aa bill of lading and an invoice
- Ba packing slip and a bill of lading
- Can invoice and a packing slip
- Dan invoice and a sales order
26For a given order, assume that goods have been picked for shipment and the items and quantities have been entered into the system. Which system update below is not triggered by these actions?
- Aany back orders are initiated
- Binventory quantities are updated
- Cthe customer accounts receivable is posted
- Dshipping document
s such as the bill of lading are produced
27The third basic activity in the revenue cycle involves billing customers and maintaining accounts receivable. What is the basic document created in the billing process?
- Athe bill of lading
- Bthe purchase order
- Cthe packing list
- Dthe sales invoice
28A company uses an invoice method whereby customers typically pay according to
each invoice. This is the __________ method.- Amonthly statement
- Bopen-invoice
- Cbalance forward
- Dcycle billing
29A type of accounts receivable system that matches specific invoices and payments from the customer is called a(n) __________ system.
- Aclosed invoice
- Bbalance forward
- Ccycle billing
- Dopen invoice
30A customer returns a document along with cash payment. The document identifies the source and the amount of the cash payment. It is called a
- Aremittance advice
- Bremittance list
- Ccredit memorandum
- Ddebit memorandum
31With a(n) __________ system, customers pay according to the amount showing on
their monthly statement and payments are simply applied against the total account balance.- Aclosed invoice
- Bopen invoice
- Cbalance forward
- Dinvoice forward
32In billing systems, the __________ is sent to the customer that summarizes all transactions occurring during a given period of time and it indicates the amount due.
- Aremittance list
- Bmonthly statement
- Cinvoice
- Daging report
33When a customer pays off the balance on an invoice, the transaction is credited to the __________ file.
- Acustomer master
- Bsales transaction
- Ccash receipts
- DAll of the above are correct
34A type of business document in which part of the original document is returned to the source for further processing is called a __________ document.
- Afeedback
- Breturnable
- Cclosed-loop
- Dturnaround
35A __________ system spreads out the monthly statements to customers over the entire month with the idea being that the processing load and cash flow will be more even.
- Aclosed invoice
- Bopen invoice
- Ccycle billing
- Dbalance forward
36The last step in the revenue cycle is cash collections. The accounts receivable department must know when customers pay their invoices, yet segregation of duty controls dictate that the collection and recording functions be kept separate from each other. What is a solution to this potential internal control problem?
- Ahave customers send a remittance advice with their payment
- Bhave mailroom personnel prepare a remittance list which can be forwarded to accounts receivable
- Cestablish a lockbox arrangement with a bank
- Dall of the above
37The benefits of a cash lockbox system are maximized when
- Athe bank is located close to the company.
- Bseveral banks around the country are used.
- Conly one bank is designated.
- DEFT is used.
38A system where the bank electronically notifies a company about customers' remittances received through the postal system is known an
- Ae-cash system.
- Belectronic lockbox.
- Celectronic funds transfer (EFT).
- Delectronic data interchange (EDI).
39When customers send their remittances electronically to the company's bank, this is
called- AFEDI
- BEFT
- Cto use procurement cards
- Dan electronic lockbox
40Key differences exist when an integrated Enterprise Resource Planning system (ERP)
replaces an existing AIS or legacy system. For example, __________ are more accurate and timely, enabling sales order entry staff to provide customers more accurate information about delivery dates- Ainventory records
- Bcash receipts
- Ccredit approval decisions
- Dexceptions reports
41Automating the cash collection process is a desirable goal of the organization. A way
to incorporate the advantages of EDI with the electronic funds transfer process is- AFEDI.
- BEFT
- Cto use procurement cards
- Dan electronic lockbox
42When an ERP is used, it is assumed that there will be increases in efficiency and the
effectiveness of the activities related to the revenue cycle. However, what must be inplace and functioning well to fully realize these benefits?- Aan effective marketing staff
- Ball the components of the expenditure cycle
- Cadequate controls
- Dadequate system flowchart documentation
43Well designed AIS controls must ensure that all transactions are authorized, valid,
and properly recorded. In addition, there are three other AIS objectives. Which is
notan AIS objective?- Atransactions are recorded accuratel
- Btransactions are matched into the proper time period
- Cassets are safeguarded from loss or theft
- Dbusiness activities are performed efficiently and effectively
44The activities involved in soliciting and processing customer orders within the
revenue cycle are known as the __________.- Asales order entry process
- Bshipping order process
- Crevenue process
- Dmarketing process
45To ensure proper separation of duties the __________ makes decisions concerning
issuance of credit memos.- Aaccounts receivable supervisor
- Bwarehouse manager
- Ccredit manager
- Dcashier
46It has been discovered that credit sales have been made to customers with a poor
credit rating. If this activity continues, the company may face uncollectible sales and
losses due to bad debts. What applicable control procedure may help the c
ompany to gain control over this situation?- Aseparation of shipping and billing duties
- Bcredit approval by a credit manager and not marketing personnel
- Cdata entry application controls
- Dprice lists
47Consider the following revenue cycle scenario: The company has been exposed to customer dissatisfaction and the suggested control procedure to be implemented is toinstall and use bar-code scanners. What is the threat?
- AThe company may be shipping the wrong merchandise
- BThe company may be shipping the wrong quantities of merchandise.
- CThe company may be shipping orders to the wrong address.
- DAll of the above threats may apply to this scenario.
48Which of the following would be the least effective control to minimize the loss of
inventory?- Asecure the storage location of inventory
- Brelease inventory only with proper documentation
- Cperiodically back up all perpetual inventory records
- Dreconcile the physical and book inventories
49One applicable control procedure is to separate the shipping and billing functions within an organization. This control feature is designed to neutralize the threat of
- Athe failure to bill customers
- Bbilling errors
- Closs of data
- Dpoor performance
50A company fails to bill customers due to a lack of controls. The exposure the company faces is
- Acustomer dissatisfaction.
- Ban overstated accounts receivable balance
- Ca loss of inventory and revenue.
- Duncollectible sales and losses due to bad debts
51All of the following edit checks for online editing of accounts receivable transactions would probably be included except
- Avalidity checks on customer and invoice numbers
- Bcheck digit verification on the amount of the sale
- Cclosed loop verification on the customer name to ensure the proper account is being updated.
- Dfield checks on the values in dollar fields
52When a proper segregation of duties exists in the area of handling cash receipts, the __________, who reports to the __________, actually handles the cash and is not the same person who posts cash receipts to customer accounts.
- Acashier; treasurer
- Bcashier; controller
- Caccountant; treasurer
- Daccountant; controller
53In a cash collection system with proper controls, the __________ function,
responsible to the __________, is separate and distinct from the cash handling
activities.- Aaccounts receivable; treasurer
- Baccounts receivable; controller
- Ccashier; controller
- Dcashier; treasurer
54A serious exposure for an organization that is connected with the revenue cycle is the loss of assets. What is the related threat and applicable control procedure association with this exposure?
- Ashipping errors; reconciliation of sales order with picking ticket and packing slip
- Btheft of cash; segregation of duties and minimization of cash handling
- Closs of data; backup and recovery procedures
- Dpoor performance; preparation and review of performance reports
55Which of the following duties could be performed by the same individual and not violate segregation of duty controls?
- Ahandling cash and posting to customer accounts
- Bissuing credit memos and maintaining customer accounts
- Chandling cash and authorizing credit memos
- Dhandling cash receipts and mailing vendor payments
56To prevent the loss of valuable data in the revenue cycle, internal file labels can be
used to- Akeep competitors from accessing files.
- Brecord off - site storage locations.
- Corganize the on - site physical storage site.
- Dreduce the possibility of erasing important files.
57In the shipping area of the company, the __________ is used to obtain the goods from the warehouse facility and prepare them for shipment to the customer.
- Apicking ticket
- Bpacking slip
- Cbill of lading
- Dinvoice
58Many Internet retailers allow customers to customize products by presenting them with various alternative options. These interactive sales order entry systems are called
- Achoiceboards
- Borderboards
- Coptionboards
- Dwaterboards
59The Squishy Things Toy Company was established in 1948. It sells to retail toy stores all over the country. Until recently, the family - run business had resisted changing its sales order entry system, which involves telephone calls from outside sales people and paper documents. A simple way for the firm to increase the efficiency of this system is
- Avendor-managed inventory
- Bsales force automation.
- Ccomputer-data interchange.
- Doptical character recognition
60The Squishy Things Toy Company was established in 1948. It recently signed a large contract with a chain of retail toy stores. As a condition of the contract, the Squishy will be required to track and forecast product sales by linking in to the chain's sales database. Squishy will then be responsible for shipping products to the chain's regional warehouses as needed. The relationship between Squishy and the chain is a
- Avendor - managed inventory
- Bsales force automation.
- Celectronic data interchange.
- Doptical character recognition
61The Squishy Things Toy Company was established in 1948. It recently signed a large contract with a chain of retail toy stores. As a condition of the contract, the Squishy will be required to track and forecast product sales by linking in to the chain's sales database. Squishy will then be responsible for shipping products to the chain's regional warehouses as needed. The technology that is used for communication
between Squishy and the chain is- Avendor-managed inventory
- Bsales force automatio
- Celectronic data interchang
- Doptical character recognitio
62Sad Clown Pajamas is an Internet-based wholesaler. Customers enter their orders online. The manager of Callow Youth Clothing was entering an order when the following error message popped up: Did you mean to enter a quantity of 1000 for
your order? This message is the result of a- Avalidity check.
- Breasonableness test
- Climit check
- Dcompleteness test
63Sad Clown Pajamas is an Internet-based wholesaler. Customers enter their orders online. The manager of Callow Youth Clothing was entering and order when the following error message popped up: Please enter your email address. This message isthe result of a
- Avalidity check
- Breasonableness test
- Climit check
- Dcompleteness test
64Sad Clown Pajamas is an Internet-based wholesaler. Customers enter their orders online. The manager of Callow Youth Clothing was entering and order when the following error message popped up: Your total order exceeds your available credit.
Please contact our Credit Department. This message is the result of a- Avalidity checkl
- Breasonableness test
- Climit check
- Dcompleteness test
65In Petaluma, California, electric power is provided to consumers by the Power To The People Electrical Company, a local co-op. Each month PTTP mails bills to 70,000 households and then processes payments as they are received. The customers are provided with a remittance advice, which is a
- Awarning that failure to pay by the due date will result in a late charge
- Bconfirmation of the firm's privacy policy.
- Cturnaround document
- Dbill
66Which of the following is an example of a wireless technology used to increase the efficiency of picking and packing products for shipment?
- ABar codes
- BRFID
- COCR
- Dlaser scans
67Laz Chance wears roller blades and headpho
nes when he is at work at the Squishy Things Toy Company. He is a product packer. The headphones give him computer-generated instructions so he knows the location of each item and quantity that should be included in the order. These instructions are the equivalent of a- Apicking ticket
- Bbill of landing
- Cpacking slip
- Dremittance advice
- Ecredit memo
68Laz Chance wears roller blades and headphones when he is at work at the Squishy
Things Toy Company. He is a product packer. The headphones give him computer-generated instructions so he knows the location of each item and quantity that should be included in the order. He encloses a paper form in the box when the order is complete. The form is called a- Apicking ticket
- Bbill of landing
- Cpacking slip
- Dremittance advice
- Ecredit memo
69The shipping department at Squishy Things Toy Company follows policies that determine which carrier will deliver orders according to the size, weight, and destination of the shipment. It maintains standing agreements with shippers that specify legal responsibility for the shipment while it is in transit. The terms of the agreements define an order's
- Apciking ticket
- Bbill of landing
- Cpacking slip
- Dremittance advice
- Ecredit memo
70Sad Clown Pajamas is an Internet-based wholesaler. The manager of Callow Youth Clothing received an order from Sad Clown and found that the wrong product had been shipped. He repackaged the order and sent it back for a refund. When it was received, he received a
- Apicking ticket
- Bbill of landing
- Cpacking slip
- Dremittance advice
- Ecredit memo
71Sad Clown Pajamas is an Internet-based wholesaler. The customer account manager at Sad Clown received a call from the manager at Callow Youth Clothing. The firm was entering bankruptcy liquidation and it was unlikely that they would be able to pay the outstanding balance on their account. The account manager decided to write off the account, so he issued a
- Apicking ticket
- Bbill of landing
- Cpacking slip
- Dremittance advice
- Ecredit memo
72Because it is the most fungible of all assets, the management of cash has always been the most difficult of all control issues. The most important of cash controls is
- Aminimization of cash handlin
- Blockbox arrangement
- Csegregation of duties
- Dfrequent reconciliation of record
73A sales clerk at an electronics store scanned the bar code for a low cost set of headphones and then substituted a high cost set of headphones for his friend, who paid the lower price. Which of the following controls would help to prevent this sort of fraud?
- ARFID
- BPhysical inventory checking
- CSegregation of dutie
- DAn electronic lockbox
74Using the _______ method, customers typically pay a sales invoice that reflects a single transaction, referred to as a _______
- Aopen invoice; monthly statement
- Bopen invoice; remittance advice
- Cbalance-forward; monthly statemen
- Dbalance-forward; remittance advic
75Using the _______ method of maintaining accounts receivable, customers typically pay a sales invoice that lists all transactions during a given time period represented, referred to as a _______.
- Aopeninvoice; monthly statement
- Bopen invoice; remittance advice
- Cbalance-forward; monthly statement
- Dbalance-forward; remittance advice
76Which of the following poses an internal control problem?
- ACredit memos are approved by the Sales Manag
- BDisbursements of cash are approved by the Finance Manage
- CRaw material deliveries are compared with the relevant purchase orders clerks in the Shipping and Receiving Department
- DBank accounts are reconciled by the Finance Departmen
77Which of the following poses an internal control problem?
- APhysical inspection of inventory quantity and condition is outsourced to a firm that specializes in
this service. - BProducts are released from inventory after a warehouse employee and a shipping clerk sign the
pick list. - CSales representatives set up new customer accounts and determine their credit limits
- DWhen payments are received, they are sent to the cashier’s office and remittance data are sent to
the accounts receivable department
- APhysical inspection of inventory quantity and condition is outsourced to a firm that specializes in
78In the expenditure cycle, the primary external exchange of information occurs with
- Acustomers
- Bsuppliers
- Cmanagement
- Dthe audit committee
79Within the expenditure cycle, internal information flows
- Afrom the production cycle to the expenditure cycle.
- Bfrom the revenue cycle to the expenditure cycle.
- Cto the general ledger from the expenditure cycle.
- DAll of the above are correct.
80To accomplish the objectives set forth in the expenditure cycle, a number of key
management decisions must be addressed. Which of the decisions below is
not ordinarily found as part of the expenditure cycle?- AHow can cash payments to vendors be managed to maximize cash flow?
- BWhat is the optimal level of inventory and supplies to carry on hand?
- CWhere should inventories and supplies be held?
- DWhat are the optimal prices for each product or service?
81There are three basic activities in the expenditure cycle. One of the basic activities is the receiving and storage of goods, supplies, and services. What is the counterpart of this activity in the revenue cycle?
- Athe sales order entry process
- Bthe shipping function
- Cthe cash collection activity
- Dhe cash payments activity
82The first major business activity in the expenditure cycle is ordering inventory and supplies. The traditional approach to management of inventory to ensure sufficient inventory to maintain production is known as
- Asafety stock
- Bjust-in-time production
- Ceconomic order quantity
- Doptimal inventory quantity
83EOQ includes several variables that must be taken into consideration when calculating the optimal order size. One variable, the costs associated with holding inventory, is referred to as
- Aordering costs
- Bcarrying costs
- Cthe reorder point
- Dstockout costs
84The decision of when to place an order in a traditional inventory system is specified by the
- Acompany inventory policies.
- Beconomic order quantity.
- Cstockout point.
- Dreorder point.
85When goods are being ordered from a vendor, which electronic files are either read or updated?
- Ainventory, vendors, and accounts payable
- Bvendors and accounts payable
- Copen purchase orders and accounts payable
- Dinventory, vendors, and open purchase orders
86One alternative approach to managing inventory is materials requirements planning (MRP). What is a key feature of this approach?
- Ato minimize or entirely eliminate carrying and stockout costs
- Bto reduce required inventory levels by scheduling production rather than estimating needs
- Cto determine the optimal reorder point
- Dto determine the optimal order size
87The major advantage of an MRP inventory system is that it reduces inventory levels. This is because
- Athe uncertainty about when materials are needed is reduced, thus reducing the need to carry large
levels of inventory. - Bthe system is able to compute exactly the cost of purchasing by taking into account all costs
associated with inventory carrying. - Cinventory is brought to the production site exactly when needed and in the correct quantities by the
vendor. - DNone of the above are correct.
- Athe uncertainty about when materials are needed is reduced, thus reducing the need to carry large
88The inventory management approach that attempts to minimize, if not eliminate, carrying and stockout costs is
- Athe materials requirements planning.
- Bthe economic order quantity.
- Ca just-in-time inventory system.
- DThere is no such inventory management approach.
89What aspect below best characterizes a JIT inventory system?
- Afrequent deliveries of smaller quantities of items to the work centers
- Bfrequent deliveries of large quantities to be held at the work centers
- Cless frequent deliveries of large quantities of goods to central receiving
- Dinfrequent bulk deliveries of items directly to work centers
90What is the key difference between the MRP and JIT inventory management approaches?
- AOnly JIT reduces costs and improves efficiency.
- BMRP is especially useful for products such as fashion apparel.
- CJIT is more effectively used with products that have predictable patterns of demand.
- DMRP schedules production to meet estimated sales needs; JIT schedules production to meet customer demands.
91MRP will be a preferred method over JIT when the
- Ademand for inventory is fairly predictable.
- Bdemand for inventory is mostly unpredictable.
- Cproduct has a short life cycle.
- DNone of the above are correct.
92A key decision in ordering is selecting a suitable vendor. Which of the following would not be a major criterion in vendor selection?
- Aprices of goods
- Bquality of goods
- Ccredit rating of the vendor
- Dability to deliver on time
93Once a vendor is selected for a product, the company's identity is recorded in the
- Ageneral ledger
- Bpurchase requisition file
- Cproduct inventory transaction file
- Dproduct inventory master record
94The paper document or electronic form that formally requests a supplier to sell and deliver specified products at designated prices is called
- Aa purchase order
- Ba materials requisition
- Ca sales invoice
- Da receiving report
95A purchase order is
- Aa document formally requesting a vendor to sell a certain product at a certain price.
- Ba request for delivery of certain items and quantities.
- Ca contract between the buyer and vendor once accepted by the vendor.
- DAll of the above are true.
96A standing order to purchase specified items at a designated price, from a particular supplier for a set period of time, is called a
- Aset order.
- Bblanket purchase order.
- Cpurchase order.
- Dcommodity order.
97A 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. This name of this technique is- Aan EDI auction.
- Ba trading exchange.
- Ca reverse auction.
- Da supplier consortium
98The receiving department has two major responsibilities in connection with the expenditure cycle. Identify one of these responsibilities.
- Ashipping products most efficiently and at the lowest cost
- Bdeciding if the delivery should be accepted
- Cverifying any purchase discounts for the delivery
- Ddeciding on the location where the delivery will be stored until used
99Which of the following is generally not shown on a receiving report?
- Aprice of the items
- Bquantity of the items
- Cpurchase order number
- Dcounted and inspected by
100A receiving clerk notes that a delivery of 10 units has been received, but the purchase order specified 12 units.
A debit memo will be prepared to adjust for the difference in the quantity ordered and received. Who should prepare this document?- Athe receiving clerk
- Bmanagement
- Cthe sales department
- Dthe purchasing department
101Identify which of the following scenarios the buyer could adjust by using a debit memo document.
- Aquantity different from that ordered
- Bdamage to the goods
- Cgoods that fail inspection for quality
- DAll of the above are possible scenarios.
102What is one of the best ways to improve the overall efficiency and effectiveness of the receipt and storage of ordered items?
- Arequiring all suppliers to have a second party verify quantities purchased before shipment
- Brequiring all suppliers to have bar-codes on their items to allow electronic scanning upon delivery by the receiving department
- Crequiring all suppliers to use EDI to expedite the receiving department function
- Drequiring all delivery trucks to have satellite data terminals to expedite the receiving department function
103All of the following technologies could be useful aids in the receiving process except
- Abar coding.
- Bradio frequency identification tags.
- CEFT.
- Dsatellite technology.
104Vendor invoices are approved by the __________, which reports to the __________.
- Apurchasing department; controller
- Baccounts payable department; treasurer
- Cpurchasing department; treasurer
- Daccounts payable department; controller
105From a legal standpoint, when does the obligation to pay a vendor arise?
- Awhen the goods are requisitioned
- Bwhen the goods are ordered
- Cwhen the goods are received by the purchaser
- Dwhen the goods are billed
106The disbursement voucher and supporting documents are sent to the __________ for payment prior to the due date.
- Acashier
- Btreasurer
- Ccontroller
- Daccounts payable department
107A __________ system is a system in which an approved invoice is posted to the
vendor account and is stored in an open invoice file until payment is made by check.- Avoucher
- Bnonvoucher
- Ccycle
- Dblanket invoice
108A disbursement voucher contains
- Aa list of outstanding invoices.
- Bthe net payment amount after deducting applicable discounts and allowances.
- Cthe general ledger accounts to be debited.
- DAll of the above are correct.
109A legal obligation arises at the time goods are received from a supplier. The objective of accounts payable is to authorize payment only for goods or services actually ordered and received. The best way to process supplier invoices is to use
- Aelectronic funds transfer for small, occasional purchases from suppliers.
- Ba nonvoucher system.
- CEDI for all small, occasional purchases from suppliers.
- Da disbursement voucher system.
110What is not an advantage to using disbursement vouchers?
- ADisbursement vouchers reduce the number of checks written.
- BDisbursement vouchers can be prenumbered which simplifies the tracking of all payables.
- CDisbursement vouchers facilitate separating the time of invoice approval from the time of invoice payment.
- DThere are no disadvantages to using disbursement vouchers.
111Which of the following is not an advantage of a voucher system?
- Aseveral invoices may be included on one voucher, reducing the number of checks
- Bdisbursement vouchers may be pre-numbered and tracked through the system
- Cthe time of voucher approval and payment can be kept separate
- Dit is a less expensive and easier system to administer than other systems
112What is the final activity in the expenditure cycle?
- Aordering goods.
- Breceipt and storage of goods
- Capproving vendor invoices for payment
- Dthe payment of approved invoices
113In a typical cash disbursement procedure, who usually handles the checks and may even be able to sign checks up to a certain dollar limit?
- Athe accounts payable supervisor
- Bthe controller
- Cthe cashier
- Dthe treasurer
114 Duties in the expenditure cycle should be properly segregated to promote internal control. This means that the authorization function is performed by __________, the recording function is performed by __________, and the cash disbursement function is performed by the __________
- Aaccounts payable; purchasing; cashier
- Bpurchasing; accounts payable; cashier
- Cpurchasing; cashier; accounts payable
- Dpurchasing; accounts payable; treasurer
115A voucher package should include
- Aa purchase requisition, vendor invoice, and receiving report
- Ba purchase order, vendor invoice, and receiving report.
- Ca purchase requisition, purchase order, and receiving report
- Da bill of lading and vendor invoice.
116The evaluated receipt settlement (ERS) replaces the more traditional 3-way matching process with a 2-way match of the purchase order and the
- Avendor invoice
- Bsales invoice
- Creceiving report
- Ddisbursement voucher
117What may be the biggest opportunity to improve the efficiency of accounts payable?
- Aconvert a manual AIS system to EDI and EFT
- Bstreamline noninventory purchases
- Cuse ERS
- Duse disbursement vouchers
118When purchasing miscellaneous supplies, companies can reduce costs, improve efficiency, and combat employee fraud by using
- Aprocurement cards
- Ba JIT inventor< system
- Ccredit cards
- Ddebit cards
119If available, a 1% discount for payment within 10 days instead of 30 days represents an approximate savings of __________ % annually.
- A1
- B12
- C18
- D36
120When a legacy system is replaced with an integrated Enterprise Resource Planning (ERP) system, many benefits are realized for the organization. What is a key improvement in the record keeping function?
- AAny department can now submit a request to purchase items.
- BThe system tracks the exact time of delivery
- CMajor suppliers send electronic notification of incoming deliveries
- DInventory records are more accurate and timely
121The threat of paying prices that are too high for goods ordered can pose a problem in the expenditure cycle. What is an appropriate control that would be applicable to help mitigate this threat?
- Arequire the receiving department to verify the existence of a valid purchase order
- Buse only approved suppliers and solicit competitive bids
- Conly pay invoices that are supported by the original voucher package
- Duse bar-code technology
122What is probably the most effective control for the prevention of kickbacks to purchasing agents?
- Apurchasing from approved vendors
- Bgood supervision in the purchasing area
- Ca corporate policy to prohibit purchasing agents from accepting kickbacks
- Dreviews of vendor performance
123There are several threats that are associated with the process and activity of receiving and storing goods. Identify one of these threats below.
- Aerror is counting
- Bkickbacks
- Crequests for unnecessary items
- Derrors in vendor invoices
124What is the easiest way to prevent the acceptance of unordered goods
- Aorder only from approved vendo
- Balways require that a valid purchase order exists before goods can be accepted at the time of
deliver - Chave an appropriate conflict of interest policy in pla
- Drequire receiving personnel to call the vendor before accepting any goo
125Which of the following is not a common control for ensuring inventory is secure and
inventory counts are accurate- Acontrol of physical access to the inventory storage areas
- Btransfers of inventory with proper documentation
- Csending "blind" copies of purchase orders to inventory control for data entry
- Dmaking physical counts of inventory at least once per year
126Double-checking the accuracy of an invoice is an applicable control that can help to neutralize a threat in the expenditure cycle. What process or activity would specifically be associated with this control
- Aorder goods
- Breceive and store goods
- Cpay for goods and services
- Dgeneral issues
127There is a threat of paying an invoice twice. What is an applicable control that may help mitigate this threat?
- Apayment should never be authorized for a photocopy of an invoice
- Bdouble-check invoice accura
- Capproval of a purchase ord
- Dadequate perpetual inventory records
128Which control would be best to prevent payments made to fictitious vendors?
- Aallow payments only to approved vend
- Brestrict access to any payment or approval documents
- Chave an independent bank reconcilia
- Dmake sure all documents are in order before approving paym
129In the expenditure cycle, good control dictates that expenditures should be paid by check. This may not be feasible when minor purchases are made. To facilitate quick payment for minor purchases, a(n) __________ should be set up and maintained using __________.
- Aspecial bank account; disbursement vouch
- Bimprest fund; vouche
- Ccash box; small denomination bi
- Dpetty cash fund; procurement cards
130A surprise count of petty cash by the auditor should find the total of __________ equal to the amount authorized for the fund.
- Acash and credit memos
- Bcash and petty cash vouchers
- Ccash
- Dcash and checks
131Special care should be taken when EFT payments are made to vendors. What control
should be put in place that assigns responsibility for EFT payments?- Aencrypt all EFT transmissions
- Btime stamp all EFT transactions
- Cestablish a control group to monitor EFT transactions for validity and accu
- Dnumber all EFT transaction
132Which of the following threats is not specific to the purchase requisition process of the expenditure cycle?
- Astockouts
- Bpurchaising from unauthorized vendors
- Crequisitioning goods not neede
- DAll of the above are threats in the purchase requisition process
133There is a symmetrical interdependence between a firm’s expenditure cycle and its
supplier´s- Aproduction cycle
- Brevenue cycle
- Cexpenditure cycle
- Dgeneral ledger and reporting system
134There is a symmetrical interdependence between a firm’s revenue cycle and its
customers’- Aproduction cycle
- Brevenue cycle
- Cexpenditure cycle
- Dgeneral ledger
135Inbound logistics is part of the
- Arevenue cycle
- Bexpenditure cycle
- Cproduction cycle
- Dgeneral ledger
136The management at Sad Clown Pajamas, an Internet-based wholesaler, is considering a new inventory control system. The current system is ina dequate because it results in stockouts that interrupt production and excess stocks of some materials that result in markdowns and high carrying costs. The new system, which will focus on ensuring that the amounts purchased minimize these costs, will employ
- Aa just-in-time inventory system
- Bthe economic order quantity
- Ca recorder point
- Dmaterials requirements planning
137The management at Sad Clown Pajamas, an Internet-based wholesaler, is considering a new inventory control system. The current system is inadequate because it results in stockouts that interrupt production and excess stocks of some materials that result in markdowns and high carrying costs. The new system, which will focus on ensuring that orders are placed with sufficient lead time to prevent stockouts, will employ
- Aa just-in-time inventory< system
- Bthe economic order quantity.
d) - Ca reorder point.
- Dmaterials requirements planning
138The management at Sad Clown Pajamas, an Internet-based wholesaler, is considering a new inventory control system. The current system is inadequate because it results in stockouts that interrupt production and excess stocks of some materials that result in markdowns and high carrying costs. The new system, which will focus on forecasting demand for Sad Clown's products, will employ
- Aa just-in-time inventory system.
- Bthe economic order quantity.
- Ca reorder point.
- Dmaterials requirements planning
- Aa just-in-time inventory system.
139The management at Sad Clown Pajamas, an Internet-based wholesaler, is considering a new inventory control system. The current system is inadequate because it results in stockouts that interrupt production and excess stocks of some materials that result in markdowns and high carrying costs. The new system, which will focus on reducing or completely eliminating carrying costs, will employ
- Aa just-in-time inventory syste
- Bthe economic order quantity
- Ca reorder point
- Dmaterials requirements planning
140Bob Chum is the sales manager at Folding Squid Technologies. At lunch with the company CEO, he proudly announced that he had negotiated a ______ with a client that defined a long-term commitment to buy components from Folding Squid
- Apurchase order
- Bblanket purchase order
- Creceiving report
- Ddebit memo
- Ecredit memo
141Bob Chum is the sales manager at Folding Squid Technologies. At lunch with the company CEO, he proudly announced that he had received a ______ from a client to buy a large quantity of components from Folding Squid.
- Apurchase order
- Bblanket purchase order
- Creceiving report
- Ddebit memo
- Ecredit memo
142Bob Chum is the sales manager at Folding Squid Technologies. At lunch with the company CEO, he pulled out a ______ that showed that recent deliveries had raised inventory levels enough to meet current sales quotas
- Apurchase order
- Bblanket purchase order
- Creceiving report
- Ddebit memo
- Ecredit memo
143Bob Chum is the sales manager at Folding Squid Technologies. At lunch with the company CEO, he complained that a recent shipment from a vendor had been unsatisfactory and so had to be returned. That required the purchasing manager to send a _______ to the supplier
- Apurchase order
- Bblanket purchase order
- Creceiving report
- Ddebit memo
- Ecredit memo
144Bob Chum is the sales manager at Folding Squid Technologies. At lunch with the company CEO, he complained that a recent shipment from a vendor had been unsatisfactory and so had to be returned. That required the purchasing manager to request a _______ from the supplier.
- Apurchase order
- Bblanket purchase order
- Creceiving report
- Ddebit memo
- Ecredit memo
145The best system to use when the objective is to minimize the number of checks th at need to be written to pay vendor invoices is
- Aa voucher system
- Ba just-in-time inventory system
- Ca nonvoucher system
- Da fail-safe system
146In the expenditure cycle, evaluated receipt settlement increases efficiency by
- Aeliminating the need for receiving reports
- Beliminating the need for vendor invoices
- Celiminating the need for purchase orders
- Deliminating the need to prepare and mail checks
147In the expenditure cycle, financial data electronic interchange increases efficiency by
- APiet du Schnorrer!
- Beliminating the need for vendor invoic
- Celiminating the need for purchase orde
- Deliminating the need to prepare and mail check
148Procurement cards differ from corporate credit cards in which of the following ways
- ACredit limits can be set for procurement cards, but not corporate credit ca
- BCredit cards can be used to make purchases without an explicit sign off by supervisors, but
procurement cards require a sign - CProcurement cards can only be used with approved vendors, but cred
it cards can be used anywhere - DProcurement card invoices are sent separately for each card, whereas corporate credit cards are
consolidated into a single invoic
149The purchasing manager at Folding Squid Technologies has responsibility for reviewing and authorizing purchase orders. He also reviews receiving reports, approves or corrects them, and authorizes the cashier to pay vendor invoices. Which of the following would correct control weaknesses, if any, related to these activities
- AVendor invoices should be reviewed by the purchasing manager to ensure that they are c
- BAccounts payable should reconcile purchase orders, receiving reports, and i
- CVendor invoices should be reviewed by accounts receivable and then cancelled wh
- DControls are adequate under the current syst
150The purchasing manager at Folding Squid Technologies has responsibility for reviewing and authorizing purchase orders. Receiving reports are prepared by shipping and receiving based on the relevant purchase order(s). Purchase orders, receiving reports, and vendor invoices are reconciled by accounts payable, which authorizes payment. Which of the following would correct control weaknesses, if any, related to these activities?
- AVendor invoices should be reviewed by the purc hasing manager to ensure that they are correct.
- BAccounts payable should authorize purchase orders
- CReceiving reports should be reviewed and corrected by the purchasing manager
- DControls are adequate under the current system
151The receiving clerk at Folding Squid Technologies examines incoming shipments and reconciles their contents with the relevant purchase orders. A receiving report is then sent to accounts receivable and the vendor's invoice is approved for payment. Which of the following would correct control weaknesses, if any, related to these activities?
- AThe invoice should be approved for payment by the shipping clerk after the purchase order and
receiving report are reconciled. - BAccounts payable should reconcile the purchase order and the receiving report
- CInvoices, purchase orders, and receiving reports should be reconciled by the receiving clerk.
- DControls are adequate under the current system
- AThe invoice should be approved for payment by the shipping clerk after the purchase order and
152The receiving clerk at Folding Squid Technologies examines incoming shipments and checks their purchase order numbers. A receiving report is then sent to accounts payable, where it is reconciled with the relevant purchase orders and invoices and payment is authorized. Which of the following would correct control weaknesses, if any, related to these activities?
- AVendor invoices should be approved for payment by the shipping clerk after the purchase order and receiving report are reconcile
- BVendor invoices should be approved for payment by the purchasing manager
- CPurchase orders and receiving reports should be reconciled by the purchasing manager
- DControls are adequate under the current system
Informações
- Descrição
- [ 333 ] Ch. 12 & 13
- Autor
- Kylie LaCombe
- Idioma
- English
- Visualizações
- 126
- Etiquetas
- Avaliação
- Ainda sem avaliações Avalie este quiz