Question 1

Choose from the list below the best definition of Inventory management.
A) Inventory management is the process that coordinates the communication of inventory availability and needs across the purchasing, conversion and sales processes.
B) Inventory management oversees the lifecycle of a product from procuring raw materials through customer sales.
C) Inventory management receives the orders along with a supplier-generated packing slip, which shows quantities and descriptions.
D) Inventory management are products in the process of being manufactured.

Accepted Answer

Inventory management involves coordinating inventory availability and needs across various processes like purchasing, conversion, and sales.

Question 2

Choose from the list below the best definition of Supply chain management.
A) Supply chain management is the process that coordinates the communication of inventory availability and needs across the purchasing, conversion and sales processes.
B) Supply chain management oversees the life cycle of a product from procuring raw materials through customer sales.
C) Supply chain management receives the orders along with a supplier-generated packing slip, which shows quantities and descriptions.
D) Supply chain management are products in the process of being manufactured.

Accepted Answer

Supply chain management encompasses the entire life cycle of a product, from the procurement of raw materials to the delivery of the final product to consumers, including all the processes involved in transforming raw materials into finished goods and distributing them to customers.

Question 3

Numerous departments are involved in the purchases and payments processes. Choose from the list below one of the departments that is involved in the purchases and payments processes.
A) Purchasing
B) Sales
C) Operations
D) Marketing

Accepted Answer

The Purchasing department is directly involved in the processes of acquiring goods and services for a company, which includes the activities related to purchases and payments.

Question 4

Numerous departments are involved in the purchases and payments processes. Choose from the list below one of the departments that is involved in the purchases and payments processes.
A) Sales
B) Receiving
C) Operations
D) Marketing

Accepted Answer

The Receiving department is involved in the purchases and payments processes as it is responsible for receiving goods and verifying that the goods received match the purchase orders, which is a critical step in the process of purchasing and payments.

Question 5

Numerous departments are involved in the purchases and payments processes. Choose from the list below one of the departments that is involved in the purchases and payments processes.
A) Sales
B) Operations
C) Warehouse
D) Marketing

Accepted Answer

The answer of Numerous departments are involved in the purchases...

Question 6

Numerous departments are involved in the purchases and payments processes. Choose from the list below one of the departments that is involved in the purchases and payments processes.
A) Sales
B) Operations
C) Marketing
D) Accounts Payable

Accepted Answer

Accounts Payable is directly involved in the purchases and payments processes, handling obligations to suppliers/vendors for goods and services received that haven't been paid for yet.

Question 7

Choose from the list below the best control activity to prevent receiving products from unapproved vendors.
A) Regularly review approved vendors and their performance. Update the database to remove inactive vendors and those who do not meet performance standards.
B) All purchases routed through the purchasing department
C) Segregation of duties
D) Implement training for employees who communicate with vendors for purchasing.

Accepted Answer

Regularly reviewing approved vendors and their performance helps ensure that only approved vendors are used, reducing the risk of receiving products from unapproved vendors.

Question 8

Choose from the list below the best control activity to prevent purchases from unapproved vendors which are conflicts of interest or unauthorized related-party transactions that may result in regulatory or reputational damage.
A) Regularly review approved vendors and their performance. Update the database to remove inactive vendors and those who do not meet performance standards.
B) All purchases routed through the purchasing department
C) Segregation of duties
D) Implement training for employees who communicate with vendors for purchasing.

Accepted Answer

Routing all purchases through the purchasing department ensures that purchases are made from approved vendors only, preventing unauthorized transactions and mitigating risks associated with conflicts of interest or regulatory and reputational damage.

Question 9

Choose from the list below the best control activity to prevent unauthorized changes to the vendor table that may result in fraudulent purchases or loss of financial assets.
A) Regularly review approved vendors and their performance. Update the database to remove inactive vendors and those who do not meet performance standards.
B) All purchases routed through the purchasing department
C) Segregation of duties
D) Implement training for employees who communicate with vendors for purchasing.

Accepted Answer

Segregation of duties is a fundamental control activity that prevents unauthorized changes by dividing responsibilities among different individuals, reducing the risk of fraud or errors.

Question 10

Choose from the list below the best control activity to prevent entering oral or written contracts prior to the completion of the vendor onboarding process that may result in a financial obligation to unapproved vendors.
A) Regularly review approved vendors and their performance. Update the database to remove inactive vendors and those who do not meet performance standards.
B) All purchases routed through the purchasing department
C) Segregation of duties
D) Implement training for employees who communicate with vendors for purchasing.

Accepted Answer

The answer of Choose from the list below the best...

Question 11

Choose from the list below the best control activity to prevent unauthorized purchase requisitions that may result in unauthorized or fraudulent purchases.
A) An authorized person from the department making the request must approve the requisition.
B) Separate the duties of ordering goods from receiving, payment, and accounting responsibilities.
C) Match purchase requisitions with purchase orders and generate an exception report investigation.
D) Each blanket purchase order must specify monetary limits and have a specified duration.

Accepted Answer

Requiring an authorized person from the department making the request to approve the requisition ensures that only legitimate and necessary purchases are made, preventing unauthorized or fraudulent requisitions.

Question 12

Choose from the list below the best control activity to prevent unauthorized purchase orders submitted to an unauthorized vendor that may result in unauthorized or fraudulent purchases.
A) An authorized person from the department making the request must approve the requisition.
B) Separate the duties of ordering goods from receiving, payment, and accounting responsibilities.
C) Match purchase requisitions with purchase orders and generate an exception report investigation.
D) Each blanket purchase order must specify monetary limits and have a specified duration.

Accepted Answer

Separating duties ensures that no single individual has control over all aspects of a transaction, reducing the risk of unauthorized or fraudulent activities.

Question 13

Choose from the list below the best control activity to prevent purchase requisitions split into more than one purchase order to circumvent authorized limits that may result in unauthorized or fraudulent purchases.
A) An authorized person from the department making the request must approve the requisition.
B) Separate the duties of ordering goods from receiving, payment, and accounting responsibilities.
C) Match purchase requisitions with purchase orders and generate an exception report investigation.
D) Each blanket purchase order must specify monetary limits and have a specified duration.

Accepted Answer

Matching purchase requisitions with purchase orders and generating an exception report for investigation helps in identifying instances where a single requisition is split into multiple orders, potentially to circumvent authorized spending limits. This control activity directly addresses the risk of unauthorized or fraudulent purchases by ensuring that any discrepancies or anomalies are flagged for further review.

Question 14

Choose from the list below the best control activity to prevent blanket purchase orders that may result in excessive purchases.
A) An authorized person from the department making the request must approve the requisition.
B) Separate the duties of ordering goods from receiving, payment, and accounting responsibilities.
C) Match purchase requisitions with purchase orders and generate an exception report investigation.
D) Each blanket purchase order must specify monetary limits and have a specified duration.

Accepted Answer

Blanket purchase orders without specified monetary limits and durations can lead to excessive purchases. By setting these parameters, organizations can better control spending and prevent unauthorized or unintended large-scale purchases.

Question 15

Choose from the list below the best control activity to prevent accepting goods that were not ordered.
A) Three-way matching of purchase order, receiving report, and vendor invoice prior to payment
B) Implement an e-procurement system that matches the scheduled delivery window period with the delivery date.
C) Match goods received data to data on purchase orders.
D) Restrict physical access to the receiving department.

Accepted Answer

Three-way matching of purchase order, receiving report, and vendor invoice prior to payment is the best control activity to prevent accepting goods that were not ordered. This is because it ensures that the goods received are the same as the goods that were ordered and that the price is correct.

Question 16

Choose from the list below the best control activity to prevent goods accepted earlier or later than the scheduled delivery date that may result in excessive or obsolete inventory.
A) Three-way matching of purchase order, receiving report, and vendor invoice prior to payment
B) Implement an e-procurement system that matches the scheduled delivery window period with the delivery date.
C) Match goods received data to data on purchase orders.
D) Restrict physical access to the receiving department.

Accepted Answer

Implementing an e-procurement system that matches the scheduled delivery window period with the delivery date is the best control activity to prevent goods from being accepted earlier or later than the scheduled delivery date. This system can automatically ensure that deliveries are scheduled and received within the specified timeframe, reducing the risk of excessive or obsolete inventory.

Question 17

Choose from the list below the best control activity to prevent goods that are received but not recorded.
A) Three-way matching of purchase order, receiving report, and vendor invoice prior to payment
B) Implement an e-procurement system that matches the scheduled delivery window period with the delivery date.
C) Match goods received data to data on purchase order.
D) Restrict physical access to the receiving department.

Accepted Answer

Matching goods received data to data on purchase order ensures that all received goods are recorded and accounted for, preventing discrepancies between received and recorded items.

Question 18

Numerous departments are involved in the fixed assets purchases and payments processes. Choose from the list below one of the departments that is involved in the fixed assets purchases and payments processes.
A) Purchasing
B) Sales
C) Operations
D) Marketing

Accepted Answer

The Purchasing department is directly involved in the acquisition of fixed assets, as it is responsible for procuring goods and services, including fixed assets, for the company.

Question 19

Numerous departments are involved in the fixed assets purchases and payments processes. Choose from the list below one of the departments that is involved in the fixed assets purchases and payments processes.
A) Sales
B) Receiving
C) Operations
D) Marketing

Accepted Answer

The Receiving department is involved in the fixed assets purchases and payments processes as it is responsible for receiving the assets, verifying their condition and quantity, and ensuring they match the purchase orders before the payment process can proceed.

Question 20

Numerous departments are involved in the fixed assets purchases and payments processes. Choose from the list below one of the departments that is involved in the fixed assets purchases and payments processes.
A) Sales
B) Operations
C) Accounts Payable
D) Marketing

Accepted Answer

Accounts Payable is involved in the fixed assets purchases and payments processes as this department is responsible for processing invoices and making payments to vendors, including those related to the acquisition of fixed assets.

Quiz 10: Purchasing and Payments Process

Choose from the list below the best definition of Inventory management.

Choose from the list below the best definition of Supply chain management.

Numerous departments are involved in the purchases and payments processes. Choose from the list below one of the departments that is involved in the purchases and payments processes.

Numerous departments are involved in the purchases and payments processes. Choose from the list below one of the departments that is involved in the purchases and payments processes.

Numerous departments are involved in the purchases and payments processes. Choose from the list below one of the departments that is involved in the purchases and payments processes.

Numerous departments are involved in the purchases and payments processes. Choose from the list below one of the departments that is involved in the purchases and payments processes.

Choose from the list below the best control activity to prevent receiving products from unapproved vendors.

Choose from the list below the best control activity to prevent purchases from unapproved vendors which are conflicts of interest or unauthorized related-party transactions that may result in regulatory or reputational damage.

Choose from the list below the best control activity to prevent unauthorized changes to the vendor table that may result in fraudulent purchases or loss of financial assets.

Choose from the list below the best control activity to prevent entering oral or written contracts prior to the completion of the vendor onboarding process that may result in a financial obligation to unapproved vendors.

Choose from the list below the best control activity to prevent unauthorized purchase requisitions that may result in unauthorized or fraudulent purchases.

Choose from the list below the best control activity to prevent unauthorized purchase orders submitted to an unauthorized vendor that may result in unauthorized or fraudulent purchases.

Choose from the list below the best control activity to prevent purchase requisitions split into more than one purchase order to circumvent authorized limits that may result in unauthorized or fraudulent purchases.

Choose from the list below the best control activity to prevent blanket purchase orders that may result in excessive purchases.

Choose from the list below the best control activity to prevent accepting goods that were not ordered.

Choose from the list below the best control activity to prevent goods accepted earlier or later than the scheduled delivery date that may result in excessive or obsolete inventory.

Choose from the list below the best control activity to prevent goods that are received but not recorded.

Numerous departments are involved in the fixed assets purchases and payments processes. Choose from the list below one of the departments that is involved in the fixed assets purchases and payments processes.

Numerous departments are involved in the fixed assets purchases and payments processes. Choose from the list below one of the departments that is involved in the fixed assets purchases and payments processes.

Numerous departments are involved in the fixed assets purchases and payments processes. Choose from the list below one of the departments that is involved in the fixed assets purchases and payments processes.