Question 1

An important control that can be used to reduce the risk of employee kickbacks is

Accepted Answer

A)  surveillance cameras.
B)  job rotation.
C)  off-site restrooms.
D)  use of ID badges.

Question 2

Which of the following is not an activity performed in the expenditure cycle?

Accepted Answer

A)  ordering
B)  receiving
C)  cash disbursement
D)  shipping

Question 3

A voucher package should include

Accepted Answer

A)  a purchase requisition, vendor invoice, and receiving report.
B)  a purchase order, vendor invoice, and receiving report.
C)  a purchase requisition, purchase order, and receiving report.
D)  a bill of lading and vendor invoice.

Question 4

MacDougalKids is a mid-sized manufacturer of organic baby food.MacDougalKids uses the EOQ inventory management approach.Which of the following factors would likely be least important when selecting inventory suppliers?

Accepted Answer

A)  product price
B)  product quality
C)  vendor delivery dependability
D)  All would be equally important.

Question 5

Duc An Incorporated provides free coffee to employees.Starbucks delivers coffee packages,sugar,creamer,and filters each week.Every month,Starbucks sends Duc An an invoice.This arrangement is best described as a

Accepted Answer

A)  set purchase order.
B)  fixed purchase order.
C)  blanket purchase order.
D)  standard purchase order.

Question 6

How can information technology be used to improve the vendor invoice approval process?

Accepted Answer

EDI eliminates the need to enter invoice...

Question 7

The management at Barks-a-Million is considering a new inventory control system.The current system is inadequate because it frequently causes stockouts that interrupt production and lead to excess stock of other materials - resulting in markdowns and high carrying costs.The new system,which will focus on forecasting demand for their products,will likely employ

Accepted Answer

A)  a just-in-time inventory system.
B)  the economic order quantity.
C)  materials requirements planning.
D)  a reorder point.

Question 8

To minimize the number of checks that need to be written to pay vendor invoices,a company should use

Accepted Answer

A)  a voucher system.
B)  a just-in-time inventory system.
C)  a nonvoucher system.
D)  an evaluated receipt settlement system.

Question 9

Identify the item below that is the biggest purchasing function cost driver.

Accepted Answer

A)  the number of purchase requisitions processed
B)  the number of suppliers used
C)  the number of purchase orders processed
D)  the quantity of items ordered

Question 10

A surprise count of an imprest petty cash fund should find the total of ________ equal to the amount authorized for the fund.

Accepted Answer

A)  cash and credit memos
B)  cash and vouchers
C)  cash
D)  cash and checks

Question 11

The traditional approach to inventory management to ensure sufficient quantity on hand to maintain production is known as

Accepted Answer

A)  safety stock.
B)  just-in-time production.
C)  economic order quantity.
D)  optimal inventory quantity.

Question 12

In a supplier audit,what are some of the red flags that could indicate potential supplier's problems?

Accepted Answer

(1)A large percentage of the supplier's ...

Question 13

Under what conditions is MRP more suitable than JIT and vice versa?

Accepted Answer

MRP systems schedule production based on...

Question 14

Ideally,inventory purchases occur in response to ________ in a JIT inventory system.

Accepted Answer

A)  customer demand
B)  optimal demand
C)  forecast demand
D)  supplier demand

Question 15

The first major business activity in the expenditure cycle is

Accepted Answer

A)  ordering inventory, supplies, or services.
B)  a customer sale.
C)  shipping goods to customers.
D)  receiving goods from vendors.

Question 16

Identify ten threats and applicable control procedures in the expenditure cycle.

Accepted Answer

Answers can include the following inform...

Question 17

Identify one way to improve the accuracy of inventory records that use a perpetual inventory approach

Accepted Answer

A)  use of an ERP system
B)  require the accounting department to calculate cost of goods sold periodically
C)  use IT to eliminate the need for manual data entry
D)  use of an MRP inventory system

Question 18

What types of decision-making and strategic information should the AIS provide in the expenditure cycle?

Accepted Answer

The AIS should provide decision making i...

Question 19

There is a symmetrical interdependence between a firm's expenditure cycle and its suppliers'

Accepted Answer

A)  production cycle.
B)  revenue cycle.
C)  expenditure cycle.
D)  general ledger and reporting system.

Question 20

Which of the following is generally not shown on a receiving report?

Accepted Answer

A)  price of the items
B)  quantity of the items
C)  purchase order number
D)  counted and inspected by

Exam 13: The Expenditure Cycle: Purchasing to Cash Disbursements

To minimize the number of checks that need to be written to pay vendor invoices,a company should use

Correct Answer
verified

Identify the item below that is the biggest purchasing function cost driver.

Correct Answer
verified

How can information technology be used to improve the vendor invoice approval process?

Correct Answer
verified
EDI eliminates the need to enter invoice...
View Answer

Duc An Incorporated provides free coffee to employees.Starbucks delivers coffee packages,sugar,creamer,and filters each week.Every month,Starbucks sends Duc An an invoice.This arrangement is best described as a

Correct Answer
verified

The traditional approach to inventory management to ensure sufficient quantity on hand to maintain production is known as

Correct Answer
verified

Identify one way to improve the accuracy of inventory records that use a perpetual inventory approach

Correct Answer
verified

Which of the following is not an activity performed in the expenditure cycle?

Correct Answer
verified

Correct Answer
verified

Which of the following is generally not shown on a receiving report?

Correct Answer
verified

A voucher package should include

Correct Answer
verified

The first major business activity in the expenditure cycle is

Correct Answer
verified

A surprise count of an imprest petty cash fund should find the total of ________ equal to the amount authorized for the fund.

Correct Answer
verified

Under what conditions is MRP more suitable than JIT and vice versa?

Correct Answer
verified
MRP systems schedule production based on...
View Answer

Identify ten threats and applicable control procedures in the expenditure cycle.

Correct Answer
verified
Answers can include the following inform...
View Answer

An important control that can be used to reduce the risk of employee kickbacks is

Correct Answer
verified

What types of decision-making and strategic information should the AIS provide in the expenditure cycle?

Correct Answer
verified
The AIS should provide decision making i...
View Answer

MacDougalKids is a mid-sized manufacturer of organic baby food.MacDougalKids uses the EOQ inventory management approach.Which of the following factors would likely be least important when selecting inventory suppliers?

Correct Answer
verified

In a supplier audit,what are some of the red flags that could indicate potential supplier's problems?

Correct Answer
verified
(1)A large percentage of the supplier's ...
View Answer

There is a symmetrical interdependence between a firm's expenditure cycle and its suppliers'

Correct Answer
verified

Ideally,inventory purchases occur in response to ________ in a JIT inventory system.

Correct Answer
verified

Exam 13: The Expenditure Cycle: Purchasing to Cash Disbursements

To minimize the number of checks that need to be written to pay vendor invoices,a company should use

Correct AnswerverifiedShow Answer

Identify the item below that is the biggest purchasing function cost driver.

Correct AnswerverifiedShow Answer

How can information technology be used to improve the vendor invoice approval process?

Correct AnswerverifiedEDI eliminates the need to enter invoice...View AnswerShow Answer

Duc An Incorporated provides free coffee to employees.Starbucks delivers coffee packages,sugar,creamer,and filters each week.Every month,Starbucks sends Duc An an invoice.This arrangement is best described as a

Correct AnswerverifiedShow Answer

The traditional approach to inventory management to ensure sufficient quantity on hand to maintain production is known as

Correct AnswerverifiedShow Answer

Identify one way to improve the accuracy of inventory records that use a perpetual inventory approach

Correct AnswerverifiedShow Answer

Which of the following is not an activity performed in the expenditure cycle?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is generally not shown on a receiving report?

Correct AnswerverifiedShow Answer

A voucher package should include

Correct AnswerverifiedShow Answer

The first major business activity in the expenditure cycle is

Correct AnswerverifiedShow Answer

A surprise count of an imprest petty cash fund should find the total of ________ equal to the amount authorized for the fund.

Correct AnswerverifiedShow Answer

Under what conditions is MRP more suitable than JIT and vice versa?

Correct AnswerverifiedMRP systems schedule production based on...View AnswerShow Answer

Identify ten threats and applicable control procedures in the expenditure cycle.

Correct AnswerverifiedAnswers can include the following inform...View AnswerShow Answer

An important control that can be used to reduce the risk of employee kickbacks is

Correct AnswerverifiedShow Answer

What types of decision-making and strategic information should the AIS provide in the expenditure cycle?

Correct AnswerverifiedThe AIS should provide decision making i...View AnswerShow Answer

MacDougalKids is a mid-sized manufacturer of organic baby food.MacDougalKids uses the EOQ inventory management approach.Which of the following factors would likely be least important when selecting inventory suppliers?

Correct AnswerverifiedShow Answer

In a supplier audit,what are some of the red flags that could indicate potential supplier's problems?

Correct Answerverified(1)A large percentage of the supplier's ...View AnswerShow Answer

There is a symmetrical interdependence between a firm's expenditure cycle and its suppliers'

Correct AnswerverifiedShow Answer

Ideally,inventory purchases occur in response to ________ in a JIT inventory system.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
EDI eliminates the need to enter invoice...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
MRP systems schedule production based on...
View Answer

Correct Answer
verified
Answers can include the following inform...
View Answer

Correct Answer
verified

Correct Answer
verified
The AIS should provide decision making i...
View Answer

Correct Answer
verified

Correct Answer
verified
(1)A large percentage of the supplier's ...
View Answer

Correct Answer
verified

Correct Answer
verified