Question 1

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

Question 2

An automated cash disbursements system can yield better cash management since payments are made on time.

Accepted Answer

A) True 
 B)False

Question 3

What is the objective of automated purchase approval?

Accepted Answer

The objective is to prevent un...

Question 4

The major risk exposures associated with the receiving department include all of the following except

Accepted Answer

A)  goods are accepted without a physical count
B)  there is no inspection for goods damaged in shipment
C)  inventories are not secured on the receiving dock
D)  the audit trail is destroyedE) B) and C)
F) A) and D)

Question 5

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 6

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 payableE) B) and D)
F) A) and C)

Question 7

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 8

A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.

Accepted Answer

A) True 
 B)False

Question 9

In a voucher system,the sum of all unpaid vouchers in the voucher register equals the firm's total voucher payable balance.

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

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

The major risk exposures associated with the receiving department include all of the following except

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

An automated cash disbursements system can yield better cash management since payments are made on time.

Correct Answer
verified

The financial value of a purchase is determined by reviewing the

Correct Answer
verified

What is the objective of automated purchase approval?

Correct Answer
verified
The objective is to prevent un...
View Answer

In a voucher system,the sum of all unpaid vouchers in the voucher register equals the firm's total voucher payable balance.

Correct Answer
verified

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

Correct Answer
verified

A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.

Correct Answer
verified

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

Correct Answer
verified

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

The major risk exposures associated with the receiving department include all of the following except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An automated cash disbursements system can yield better cash management since payments are made on time.

Correct AnswerverifiedShow Answer

The financial value of a purchase is determined by reviewing the

Correct AnswerverifiedShow Answer

What is the objective of automated purchase approval?

Correct AnswerverifiedThe objective is to prevent un...View AnswerShow Answer

In a voucher system,the sum of all unpaid vouchers in the voucher register equals the firm's total voucher payable balance.

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

A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The objective is to prevent un...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified