Question 1

This document, prepared and maintained by the receiving department, is a sequential listing of all receipts.
A)Receiving report
B)Packing slip
C)Bill of lading
D)Receiving log

Accepted Answer

Receiving log

Question 2

This document, prepared by the purchasing department, for use by the receiving department, is copy of the purchase order that eliminates all data about the price and quantity of the items ordered.
A)Packing slip
B)Blind purchase order
C)Empty purchase order
D)Receiving report

Accepted Answer

Blind purchase order

Question 3

Immediate preparation of receiving reports for all actual receipts of goods helps to minimize the risk of:
A)Timing issues
B)Omitted transactions
C)Invalid purchases
D)All of the above

Accepted Answer

A ll of the above

Question 4

Which department maintains copies of purchase orders and receiving reports so that the documents can be compared before the accounting records are updated?
A)Receiving
B)Accounts Payable
C)Cash Disbursements
D)Warehouse

Accepted Answer

Accounts Payable

Question 5

The expenditure and return process is similar to the _______ process, except that goods and cash flow in the opposite direction.
A)Procurement
B)Conversion
C)Revenue
D)Systems and control

Accepted Answer

Revenue

Question 6

There are different ways to issue a purchase order to a vendor.Which of the following is not one of the ways?
A)Hard copy via fax or mail
B)Hard copy by hand
C)Electronically via e-mail
D)Directly through the computer network

Accepted Answer

Hard copy by hand

Question 7

The information from a purchase must flow into the purchase recording systems, the accounts payable and cash disbursement systems, and the inventory tracking systems.In an IT accounting system, these recording and processing systems are called:
A)General Ledger Systems
B)Integrated Accounting Systems
C)Journal Application Systems
D)Transaction Processing Systems

Accepted Answer

Transaction Processing Systems

Question 8

A record keeping tool used to record purchases in a manual accounting system.This "tool" would consist of recording all of the purchased orders issued to vendors in a chronological order.
A)Purchase order
B)Purchase requisition
C)Purchase invoice
D)Purchase journal

Accepted Answer

Purchase journal

Question 9

This document, prepared by the vendor, provides details of the items included in the delivery; and is normally signed by the receiving clerk as verification of receipt.
A)Packing slip
B)Receiving report
C)Bill of lading
D)Purchase order

Accepted Answer

Bill of lading

Question 10

The textbook referred to the three primary categories of processes in the typical purchasing system.Which of the following in not one of those categories?
A)Purchase Processes
B)Cash Disbursement Processes
C)Receiving Processes
D)Purchase Return Processes

Accepted Answer

Receiving Processes

Question 11

Which of the following departments is not a part of the purchasing process?
A)Receiving
B)Warehouse
C)Cash Disbursements
D)Accounts Payable

Accepted Answer

Cash Disbursements

Question 12

Each category of processes in the typical purchasing system would include controls and risks.For each of the categories, the goal of the internal controls system is to reduce specific types of business risks.Which of the following is not one of those risks?
A)Recording invalid transactions.
B)Recording transactions at the wrong amounts.
C)Omitting actual transactions from the accounting records.
D)Transactions properly accumulated or transferred to the correct accounting records.

Accepted Answer

Transactions properly accumulated or transferred to the correct accounting records.

Question 13

The acquisition of materials and supplies and the related cash disbursements is referred to as:
A)The Procurement Process
B)Systems and Control Process
C)Expenditure and Return Process
D)Conversion Process

Accepted Answer

The Procurement Process

Question 14

This form is issued by the buyer, and presented to the seller, to indicate the details for products or services that the seller will provide to the buyer.Information included on this form would be: products, quantities, and agreed-upon prices.
A)Purchase order
B)Purchase requisition
C)Purchase invoice Purchase journal

Accepted Answer

Purchase order

Question 15

This form is prepared to document the need to make a purchase and requests that the specific items and quantities be purchased.
A)Purchase order
B)Purchase requisition
C)Purchase invoice
D)Purchase journal

Accepted Answer

Purchase requisition

Question 16

Which of the following events would not constitute the start of the purchasing process?
A)A warehouse attendant notices a particularly low stock level.
B)An operations manager becomes aware of additional quantities of material that will be needed to fulfill sales orders.
C)An accountant detects potential shortages in documented inventory quantities.
D)The purchasing manager receives a shipment of raw materials that she had ordered.

Accepted Answer

The purchasing manager receives a shipment of raw materials that she had ordered.

Question 17

Which of the following would be referred to as a common carrier?
A)Taxi-cab
B)Trucking company
C)City bus
D)Fire department vehicle

Accepted Answer

Trucking company

Question 18

Common expenditure processes would include all of the following, except:
A)Preparation of a purchase requisition
B)Receipt of the goods or services
C)Recording the liability
D)Payment received on account

Accepted Answer

Payment received on account

Question 19

All of the following are external reports except:
A)Balance Sheet
B)Income Statement
C)Cash Flows Statement
D)Aged Accounts Receivable Schedule

Accepted Answer

Aged Accounts Receivable Schedule

Question 20

The main reason that receiving clerks are denied access to purchase order quantities and prices is to:
A)Ensure that the receiving clerk actually takes the time to verify the accuracy of a delivery before accepting it.
B)Prevent the receiving clerk from stealing delivered goods and manipulating the quantities and prices of received goods.
C)Prevent fraudulent collusion between the common carrier and the receiving clerk.
D)N/A - the receiving clerk is NOT denied access to purchase order quantities and prices.

Accepted Answer

Ensure that the receiving clerk actually takes the time to verify the accuracy of a delivery before accepting it.

Quiz 9: Expenditures Processes and Controls - Purchases

This document, prepared and maintained by the receiving department, is a sequential listing of all receipts.

This document, prepared by the purchasing department, for use by the receiving department, is copy of the purchase order that eliminates all data about the price and quantity of the items ordered.

Immediate preparation of receiving reports for all actual receipts of goods helps to minimize the risk of:

Which department maintains copies of purchase orders and receiving reports so that the documents can be compared before the accounting records are updated?

The expenditure and return process is similar to the _______ process, except that goods and cash flow in the opposite direction.

There are different ways to issue a purchase order to a vendor.Which of the following is not one of the ways?

The information from a purchase must flow into the purchase recording systems, the accounts payable and cash disbursement systems, and the inventory tracking systems.In an IT accounting system, these recording and processing systems are called:

A record keeping tool used to record purchases in a manual accounting system.This "tool" would consist of recording all of the purchased orders issued to vendors in a chronological order.

This document, prepared by the vendor, provides details of the items included in the delivery; and is normally signed by the receiving clerk as verification of receipt.

The textbook referred to the three primary categories of processes in the typical purchasing system.Which of the following in not one of those categories?

Which of the following departments is not a part of the purchasing process?

Each category of processes in the typical purchasing system would include controls and risks.For each of the categories, the goal of the internal controls system is to reduce specific types of business risks.Which of the following is not one of those risks?

The acquisition of materials and supplies and the related cash disbursements is referred to as:

This form is issued by the buyer, and presented to the seller, to indicate the details for products or services that the seller will provide to the buyer.Information included on this form would be: products, quantities, and agreed-upon prices.

This form is prepared to document the need to make a purchase and requests that the specific items and quantities be purchased.

Which of the following events would not constitute the start of the purchasing process?

Which of the following would be referred to as a common carrier?

Common expenditure processes would include all of the following, except:

All of the following are external reports except:

The main reason that receiving clerks are denied access to purchase order quantities and prices is to: