Deck 13: Accounts Payablecash Disbursements Apcd Process

Question 1

In the ER diagram for AP/CD process, PURCHASE_REQUISITIONS generate PURCHASE_ORDERS.

Answer 1

True

Question 2

The notification of an obligation to pay a vendor for merchandise that was ordered and received is known as a purchase order.

Answer 2

False

Question 3

The purchase order triggers the make payment process.

Answer 3

False

Question 4

The vendor invoice master data is a repository of all unpaid vendor invoices.

Question 5

The AP/CD process is an interacting structure of people, equipment, activities, and controls that is designed to accomplish the handling of repetitive work routines of the AP department and the cashier, support their decision needs, and assist in the preparation of internal and external reports

Question 6

In the ER diagram of the AP/CD process, VALID_INVOICES are received from the purchasing department.

Question 7

The cashier usually reports to the controller.

Question 8

The Level 0 diagram of the AP/CD Process contains the two process bubbles: Establish payable and Approve checks.

Question 9

A disbursement voucher is designed to reflect formal approval of the voucher for payment and to provide such added data as the account distribution and the amounts to be debited.

Question 10

The trigger for either a true voucher process or a nonvoucher process is a payment request.

Question 11

The cash disbursements event data shows, in alphabetical order, the details of each cash payment made.

Question 12

The vendor invoice triggers the establish payable process.

Question 13

The vendor sends a confirmation to establish the payable.

Question 14

Within the make payment process, the three subprocesses are "Prepare proposed payments", "Select and record payments", and "Issue and record disbursements".

Question 15

When it is time to make a payment, an approved voucher is sent to the accounts payable department.

Question 16

In a relational table for PURCHASE_RECEIPTS, the primary key would be the receipt number.

Question 17

The cashier is responsible for processing vendor invoices, preparing payment vouchers, and recording purchase and disbursement transactions.

Question 18

The VP of finance usually has the cashier and the controller directly reporting to him (her).

Question 19

When the vendor payment is made, the general ledger is updated for the cash disbursement.

Question 20

A true voucher system requires that all expenditures for whatever purpose and in excess of a certain dollar amount be formally approved for payment before they can be paid.

Question 21

In an AP/CD process, a process "make payment" normally would be triggered by the data flow:

A)purchase order
B)vendor acknowledgment
C)vendor packing slip
D)payment due date information

Question 22

Data flows of an AP/CD process normally might include all of the following except:

A)PO accounts payable notification
B)sales report
C)receiving report
D)vendor invoice

Question 23

The typical AP/CD process would capture and record data related to the day-to-day operations of all of the following departments except:

A)shipping
B)cashier
C)receiving
D)activities for all of the above are captured and recorded by the AP/CD process.

Question 24

Which of the following is designed to reflect the formal approval of the voucher for payment?

A)a vendor invoice
B)an RFQ
C)a payment voucher
D)a disbursement voucher

Question 25

At the time that an AP/CD process makes payment for goods or services, the process generally follows which order.

A)select and record payments, prepare proposed payments, issue and record disbursements
B)prepare proposed payments, issue and record disbursements, select and record payments
C)issue and record disbursements, select and record payments, prepare proposed payments
D)prepare proposed payments, select and record payments, issue and record disbursements

Question 26

In the flowchart for the AP/DC process the symbol below represents the enterprise database.

Question 27

In a relational table for VALID_INVOICES, the primary key would be the vendor number.

Question 28

When the AP/CD process records a payable obligation, the data flow between "validate invoice" and "record payable" is?

A)GL payable update
B)AP notification
C)validated vendor invoice
D)receiving report

Question 29

Which of the following managers is most likely to report to the controller?

A)accounts payable department manager
B)cashier
C)purchasing department manager
D)receiving department manager

Question 30

Who usually authorizes a payment?

A)the controller
B)the purchasing manager
C)a purchasing agent
D)the treasurer

Question 31

In the Level 0 DFD for an AP/CD process, a data flow called "vendor invoice" most likely would be sent by the vendor to which of the following processes?

A)establish payable
B)make payment
C)order inventory
D)none of the above

Question 32

The cash disbursements process uses payment vouchers as inputs to update the accounts payable master data.

Question 33

Which of the following is least likely to report (either directly or indirectly) to the vice president of finance?

A)controller
B)treasurer
C)shipping department supervisor
D)accounts payable department

Question 34

Independent validation of vendor invoices helps ensure that appropriate cash discounts are obtained.

Question 35

In an AP/CD process "establish payable" would normally be triggered by:

A)vendor invoice
B)a purchase order
C)a copy of the purchase order sent to the inventory process
D)a vendor acknowledgment

Question 36

In the Level 0 DFD for an AP/CD, a data flow called "receiving report" most likely would be sent by the purchasing process to which of the following processes?

A)order inventory
B)receive goods and services
C)establish payable
D)make payment

Question 37

The AP process that uses vendor invoices for outputs updates the inventory master data.

Question 38

The typical horizontal flows of information in a accounts payable/cash disbursements process might include all of the following except:

A)an invoice is received from a vendor
B)the paid voucher is sent to the accounts payable department
C)an approved disbursement voucher is sent to the cashier
D)a copy of a receiving report is sent to the cashier

Question 39

Which of the following process bubbles would you not expect to see in the logical DFD for an AP/CD process?

A)requisition inventory
B)establish payable
C)make payment
D)all of these are process bubbles

Question 40

Fraud abuses in the AP/CD process usually entail creating phony customers or submitting fictitious purchase orders.

Question 41

In an AP/CD process, you would expect that "validating" a vendor invoice might include all of the following steps except:

A)having a copy of the invoice approved by the purchasing manager
B)comparing the invoice with a copy of the purchase order
C)comparing the invoice with a copy of the receiving report
D)checking the invoice for mathematical accuracy

Question 42

Non-invoiced payments include

A)payroll
B)income taxes
C)investments
D)all of the above

Question 43

The resources for which the AP/CD process wants to ensure security typically include all of the following except:

A)cash
B)accounts payable master data
C)accounts receivable master data
D)none of the above

Question 44

Which of the following items is not a control goal of the AP/CD process?

A)minimize inventory carrying costs
B)independent validation of vendor invoices
C)independent authorization to make payment
D)reconcile bank account

Question 45

Which of the following statements regarding evaluated receipt settlement (ERS) is false?

A)ERS is a system by which an organization pays for a purchase on the basis of the goods goods receipt.
B)ERS can reduce the costs associated with entering invoices, matching the invoice with the PO and receiving report, and resolving discrepancies between the invoice and the PO and goods receipt.
C)ERS arrangements are only made with vendors who have proven e-payment records.
D)Upon receipt of the goods, the AP/CD system compares the received quantity to the open purchase quantity and, if appropriate, makes a payment based on the price and terms on the PO.

Question 46

A control plan to ensure input accuracy in payables processing is:

A)requisition confirmation to originating department
B)match invoice, purchase order, and receiving report
C)tickler file of payments due
D)independent authorization to make payment

Question 47

Which of the following documents would be matched with the vendor invoice to ensure that the purchase was authorized (i.e., to ensure input validity)?

A)receiving report
B)acceptance report
C)purchase order
D)vendor packing slip

Question 48

In an entity-relationship (E-R) diagram for the accounts payable/cash disbursements process, you would expect that the words sent to would appear in the diamond showing the relationship between:

A)VENDORS and INVENTORY_RECEIPTS
B)VENDORS and VENDOR_INVOICES
C)VENDORS and CASH_DISBURSEMENTS
D)CASH_DISBURSEMENTS and INVENTORY_RECEIPTS

Question 49

What factor has caused an escalation of check forgeries in recent years?

A)the increased use of EDI
B)the availability of cheap color printers
C)a lack of control plans to control automated funds transfer
D)a repeal of severe civil and criminal penalties for such crimes

Question 50

A control plan that helps ensure the security of resources within the AP/CD process is:

A)requisition confirmation to originating department
B)approve vendor selection
C)independent validation of vendor invoice
D)independent authorization to make payment

Question 51

In a voucher system, the data flow between the originating department and the process "prepare disbursement voucher" typically is:

A)the disbursement voucher
B)the payment notification
C)the payment request
D)the check

Question 52

Information for evaluating vendor performance normally would reside on the:

A)accounts payable master data
B)vendor master data
C)vouchers payable master data
D)purchase order master data

Question 53

Which disbursement system most easily facilitates paying a number of invoices with a single check?

A)nonvoucher system
B)voucher system
C)balance-forward system
D)open-items system

Question 54

An exception routine is usually performed for:

A)processing payments
B)vendor invoice identification
C)purchase returns and allowances
D)general ledger updates

Question 55

A company using a database approach to data management might not maintain a relational table for ACCOUNTS PAYABLE.Rather, accounts payable balances at any point in time could be computed as the difference between the relations for which of the following continuous events?

A)PURCHASE_ORDERS and INVENTORY_RECEIPTS
B)INVENTORY and INVENTORY_RECEIPTS
C)VALID_ INVOICES and INVENTORY_RECEIPTS
D)VALID_ INVOICES and CASH_DISBURSEMENTS

Question 56

Which of the following activities would not occur when an inventory manager decides to return merchandise to a vendor?

A)the accounts payable department is notified
B)a credit memorandum is issued to the vendor
C)the warehouse is instructed to release the merchandise to the shipping department
D)a debit memorandum is prepared

Question 57

The control plan tickler file of payments due, is directed primarily at which of the following control goals?

A)select a vendor who will provide the best quality at the lowest price by the promised delivery date
B)input validity
C)input accuracy
D)input completeness

Question 58

The document one business sends to another business that identifies the goods or services to be paid and the amount is:

A)check
B)purchase requisition
C)vendor invoice
D)disbursement voucher

Question 59

Which document notifies the purchaser of his or her obligation to pay?

A)vendor packing slip
B)receiving report
C)acceptance report
D)vendor invoice

Question 60

The control plan independent validation of vendor invoice is directed primarily at which of the following control goals?

A)select a vendor who will provide the best quality at the lowest price by the promised delivery date
B)input validity
C)input accuracy
D)input completeness

Question 61

The Level 0 diagram of the AP/CD Process contains the two process bubbles of ______________________________ and ______________________________.

Question 62

The ___________________________________ triggers the "make payment" process.

Question 63

The _________________________ is an interacting structure of people, equipment, methods, and controls that is designed to accomplish the handling of repetitive work routines of the AP department and the cashier, support their decision needs, and assist in the preparation of internal and external reports

Question 64

When it is time to make a payment, an approved ____________________ is sent to the cashier.

Question 65

The ______________________________ department is responsible for processing vendor invoices, preparing payment vouchers, and recording purchase and disbursement transactions.

Question 66

The notification of an obligation to pay a vendor for merchandise that was ordered and received is known as a(n) ______________________________.

Question 67

The AP application matches invoices, quantities, prices and terms when it performs the control plan:

A)Independent validation of vendor invoices
B)Match invoice, purchase order, and receiving report
C)Independent authorization to make payment
D)Reconcile input and output batch totals

Question 68

For payment voucher input validity, which control plan uses records in the AP master data to gives authorization to the cash disbursements computer program to make payment?

A)independent validation of vendor invoices
B)match invoice, purchase order, and receiving report
C)independent authorization to make payment
D)reconcile input and output batch totals

Question 69

The VP of finance usually has the ____________________ and the ____________________ directly reporting to him (her).

Question 70

A ______________________________ is designed to reflect formal approval of the voucher for payment and to provide such added data as the account distribution and the amounts to be debited.

Question 71

When processing non-invoiced disbursements, the trigger for either a true voucher process or a non voucher process is a (n) ______________________________.

Question 72

The vendor sends a _________________________ to notify the purchaser of an obligation to pay for goods or services ordered by and shipped to the purchaser.

Question 73

To initiate an adjustment for returned goods or for a price allowance in the case of otherwise nonconforming goods, someone usually prepares a _________________________ and sends it to the vendor.

Question 74

In an AP/CD process, a frequent exception routine is caused by ________________________________________.

Question 75

The ___________________________________ data is a repository of all unpaid vendor invoices.

Question 76

A true ____________________ system requires that all expenditures be formally approved for payment and be recorded as a payable before they can be paid.

Question 77

Which of the following statements regarding e-payment technologies is true?

A)an advantage to the payer is that float is eliminated
B)approximately 50% of all business payments in the US use this technology
C)e-payments are settled through the ACH network, by wire transfer, or by credit card
D)the cost of paying an invoice is about $.75 when using e-payments

Question 78

The cashier usually reports to _________________________.

Question 79

The ______________________________ triggers the "establish payable" process.

Question 80

Within the make payment process, the three subprocesses are "Prepare proposed payments", "Select and record payments," and ___________________________________.