Deck 3: The Procurement Process

Question 1

A purchase order is associated with purchasing in the procurement process.

Answer 1

True

Question 2

A purchase order is associated with sales in the procurement process.

Answer 2

False

Question 3

A goods receipt is a document that verifies that the specified goods have been received.

Answer 3

True

Question 4

An invoice is associated with accounting in the procurement process.

Question 5

A purchase requisition is a commitment to purchase the specified quantity of the specified material.

Question 6

A purchase requisition is associated with the warehouse in the procurement process.

Question 7

A packing list is associated with accounting in the procurement process.

Question 8

A purchase order is a document that identifies the material needed, the quantity needed, and the date it is needed.

Question 9

A packing list is a document that provides details about the materials contained in the shipment.

Question 10

One purchase requisition can be converted to more than one purchase order.

Question 11

A purchase order is a document that provides details about the materials contained in the shipment.

Question 12

An invoice is a document that verifies that the specified goods have been received.

Question 13

A three-way match is necessary before payment is made.

Question 14

A packing list is associated with the warehouse in the procurement process.

Question 15

The packing list is part of the invoice receipt step in the Purchasing Process.

Question 16

The packing list is part of the receive goods step in the Purchasing Process.

Question 17

A purchase requisition is a document that identifies the material needed, the quantity needed, and the date it is needed.

Question 18

A purchase requisition is associated with purchasing in the procurement process.

Question 19

An invoice is associated with purchasing in the procurement process.

Question 20

A purchase order is a commitment to purchase the specified quantity of the specified material.

Question 21

A purchase requisition does not include which of the following data?

A) price/cost
B) F.O.B. Point
C) quantity
D) requested delivery date

Question 22

Under which of the following payment terms is payment due in 30 days, but the payer will get a 1% discount if payment is made within 7 days?

A) 7%30/Net 10
B) 1%7/Net 30
C) Net 7/30
D) 7%1/Net 30

Question 23

Which of the following is the correct sequence of steps in the Procurement Process?

A) Create Requisition, Create & Send PO, Receive Shipment, Receive Invoice, Send Payment
B) Create & Send PO, Receive Requisition, Receive Shipment, Receive Invoice, Send Payment
C) Create & Send PO, Receive Shipment, Create Requisition, Receive Invoice, Send Payment
D) Create Requisition, Create & Send PO, Receive Customer Acknowledgment, Receive Shipment, Receive Invoice

Question 24

A goods receipt does not include which of the following data?

A) price/cost
B) quantity received
C) quantity ordered
D) backorder quantity

Question 25

In the procurement process, which department creates the Purchase Order?

A) Sales
B) Purchasing
C) Warehouse
D) Accounting

Question 26

An invoice does not include which of the following data?

A) price/cost
B) F.O.B. Point
C) quantity
D) requested delivery date

Question 27

Which of the following documents is an agreement to purchase?

A) Invoice
B) Purchase Order
C) Goods Receipt Document
D) Purchase Requisition

Question 28

Which of the following payment terms means that payment is due in 30 days, but the payer will get a 3% discount if payment is made within 10 days?

A) 10%30/Net 10
B) 3%10/Net 30
C) Net 10/30
D) 10%3/Net 30

Question 29

Which of the following documents informs about the contents in a shipment?

A) Invoice
B) Purchase Order
C) Goods Receipt Document
D) Packing List

Question 30

Under the term "FOB shipping point," the buyer "owns" the material once it is shipped.

Question 31

A purchase order does not include which of the following data?

A) price/cost
B) F.O.B. Point
C) quantity
D) requisition number

Question 32

Under the term "FOB shipping point," the seller "owns" the material once it is shipped.

Question 33

A packing list does not include which of the following data?

A) price/cost
B) weight
C) quantity
D) ship date

Question 34

Which of the following documents identifies the material needed, the quantity needed, and the date it is needed?

A) Invoice
B) Goods Receipt Document
C) Packing List
D) Purchase Requisition

Question 35

In the procurement process, which department receives the invoice and sends the payment?

A) Sales
B) Purchasing
C) Warehouse
D) Accounting

Question 36

How does the recipient of a shipment know which order the shipment is for?

A) by referencing the order number included in the accompanying packing list
B) by referencing the order number included in the accompanying purchase order
C) by matching the material in the shipment with one of the unfilled purchase orders
D) by performing a three-way match of key documents

Question 37

In the procurement process, which department creates the Packing List and Goods Receipt Document?

A) Sales
B) Purchasing
C) Warehouse
D) Accounting

Question 38

In the procurement process, which department receives the Purchase Requisition?

A) Sales
B) Purchasing
C) Warehouse
D) Accounting

Question 39

One purchase requisition can be converted to only one purchase order.

Question 40

In the procurement process, which department creates the Purchase Requisition?

A) Sales
B) Purchasing
C) Warehouse
D) Accounting

Question 41

A three-way match involves which of the following documents?

A) Purchase Order
B) Goods Receipt Document
C) Invoice
D) Purchase Requisition
E) Packing List

Question 42

Which of the following are examples of process-level information relevant to the procurement process?

A) Which customers are prompt and which ones are habitually late in sending the payment?
B) Which materials are purchased most frequently?
C) Which materials are produced most often?
D) Which vendor does SSB buy from the most frequently?
E) What is the average time between sending a purchase order and receiving the shipment?

Question 43

Which of the following documents verifies that the specified goods have been received?

A) Invoice
B) Purchase Order
C) Goods Receipt Document
D) Packing List

Question 44

Which of the following are key data in an invoice?

A) Requested Delivery Date
B) Order and received quantity
C) Prices of the material ordered
D) Invoice Date
E) FOB

Question 45

Which of the following are examples of instance-level information relevant to the procurement process?

A) When did the customer receive the goods?
B) Was the invoice paid? If so, when?
C) Which suppliers are prompt and which ones are habitually late in delivering the materials ordered?
D) What was the total of the invoice?
E) How long did it take to receive the shipment after creating a purchase order?

Question 46

In which of the following documents is the price of the materials relevant?

A) Invoice
B) Purchase Requisition
C) Good Receipt Document
D) Packing List
E) Purchase Order

Question 47

Which of the following are key data in a packing list?

A) Requested Delivery Date
B) Order and ship quantity
C) Prices of the material ordered
D) Date the order was shipped
E) Unit weight

Question 48

Which of the following are examples of instance-level information relevant to the procurement process?

A) When did we receive the goods?
B) Was the invoice received? If so, when?
C) When did the warehouse ship the order out?
D) What was the total of the payment?
E) How long did it take to send the shipment after creating a sales order?

Question 49

Payment terms are declared on what document?

A) Invoice
B) Purchase Order
C) Goods Receipt Document
D) Purchase Requisition

Question 50

Which of the following are examples of instance-level information relevant to the procurement process?

A) When did we receive the goods?
B) Was the invoice sent? If so, when?
C) Which suppliers are prompt and which ones are habitually late in delivering the materials ordered?
D) What was the total of the invoice?
E) How long did it take to send the shipment after creating a sales order?

Question 51

What document is the only document created by the purchasing department?

A) Invoice
B) Purchase Order
C) Goods Receipt Document
D) Purchase Requisition

Question 52

Which of the following are key data in a goods receipt?

A) Requested Delivery Date
B) Order and received quantity
C) Prices of the material ordered
D) Receipt Date
E) Unit weight

Question 53

Which of the following steps in the procurement process do not have a financial impact on the company that is buying materials?

A) Create purchase requisition
B) Receive shipment from vendor
C) Receive invoice form vendor
D) Create and send purchase order
E) Send payment to vendor

Question 54

Which of the following are key data in a purchase requisition when the requisition is first created?

A) Quantity of material requested
B) Requested Delivery Date
C) Prices of the material ordered
D) Date the order was shipped
E) Purchase order number

Question 55

What is the only document where the quantity of the materials is not relevant?

A) Purchase Order
B) Goods Receipt Document
C) Payment
D) Purchase Requisition

Question 56

Which of the following are examples of process-level information relevant to the procurement process?

A) Which suppliers are prompt and which ones are habitually late in delivering the materials ordered?
B) Which materials are purchased most frequently?
C) Which materials are produced most often?
D) Which customer buys most frequently?
E) What is the average time between sending a purchase order and receiving the shipment?

Question 57

Which of the following are examples of process-level information relevant to the procurement process?

A) Which suppliers are prompt and which ones are habitually late in delivering the materials ordered?
B) Which materials are sold most frequently?
C) Which materials are produced most often?
D) Which vendor does SSB buy from the most frequently?
E) What is the average time between creating a sales order and sending the shipment?

Question 58

Which of the following documents is sent to accounting for payment?

A) Invoice
B) Purchase Order
C) Packing List
D) Purchase Requisition

Question 59

Which of the following steps in the procurement process have a financial impact on the company that is buying materials?

A) Create purchase requisition
B) Receive shipment from vendor
C) Receive invoice form vendor
D) Create and send purchase order
E) Send payment to vendor

Question 60

Which of the following are key data in a purchase order when the order is first created?

A) Quantity of material ordered
B) Requested Delivery Date
C) Prices of the material ordered
D) Date the order was shipped
E) Purchase order number

Question 61

In which of the following documents is the price of the materials not relevant?

A) Invoice
B) Purchase Requisition
C) Good Receipt Document
D) Packing List
E) Purchase Order