Question 1

A sales invoice originates with the:
A)Vendor
B)Purchasing Department
C)Sales Department
D)Accounting Department

Accepted Answer

A sales invoice is issued by the sales department to the customer as a request for payment for the goods sold or services rendered. Therefore, the correct choice is C.

Question 2

The Banner Company ordered $50,000 of fertilizer from Farmland Industries and were given terms of 2/15 net/60.Which of the following describes how soon the payment must be made in order to receive a discount and the amount of the discount available. 
A) 
B) 
C) 
D)

Accepted Answer

D

Question 3

Which of the following is not part of the revenue process?
A)Receive and accept order for goods and services
B)Receive goods and services
C)Receive payments for goods and services rendered
D)Provide customer support

Accepted Answer

B) Receive goods and services is not part of the revenue process; it is part of the procurement or purchasing process. The revenue process involves receiving and accepting orders, receiving payments for goods and services rendered, and providing customer support.

Question 4

Which of the following would not be collected from the customer when an order is received?
A)Type of inventory ordered
B)Name of common carrier that will deliver the goods
C)Price Quoted
D)Delivery Date
E)All of the above will be collected

Accepted Answer

The name of the common carrier that will deliver the goods is typically not collected from the customer when an order is received. This information is usually determined later by the company or the shipping department. All other options listed (type of inventory ordered, price quoted, delivery date) would typically be collected from the customer when an order is received.

Question 5

Which of the following would not be collected from the customer when an order is received?
A)Price Quoted
B)Amount and type of inventory ordered
C)Sellers cost of the product
D)Delivery Date
E)All of the above will be collected

Accepted Answer

The seller's cost of the product is not typically collected from the customer when an order is received. The other options (price quoted, amount and type of inventory ordered, delivery date) are all pieces of information that would be collected from the customer when an order is received.

Question 6

A document sent by the purchasing department to order a specific quantity of goods or services is called a:
A)Vendor invoice
B)Purchasing report
C)Purchase order
D)Purchase requisition

Accepted Answer

A purchase order is a document sent by the purchasing department to order a specific quantity of goods or services. A vendor invoice is a document sent by the vendor requesting payment for goods or services provided. A purchasing report is a summary of purchasing activities and may include information such as spending, vendor performance, and inventory levels. A purchase requisition is an internal document used to request the purchase of goods or services, typically initiated by someone in a department or division of the organization.

Question 7

The Quinter Corporation ordered material for its manufacturing process with a price of $75,000 and that had terms of 1/10 net/30.What is the lowest amount of cash Quinter will have to pay if it meets the terms of the discount agreement?
A)$67,500
B)$75,000
C)$74,250
D)$52,500

Accepted Answer

The terms 1/10 net/30 mean that the buyer can take a 1% discount if they pay within 10 days, otherwise they need to pay the full amount within 30 days. So, if Quinter pays within 10 days, they can take a discount of $750 (1% of $75,000), which means they only need to pay $74,250 ($75,000 - $750). Therefore, the lowest amount of cash Quinter will have to pay if it meets the terms of the discount agreement is $74,250.

Question 8

Which of the following is part of the revenue process?
A)Provide customer support
B)Pay suppliers for inventory
C)Convert raw material into inventory for sale
D)Order inventory for resale

Accepted Answer

Providing customer support is part of the revenue process as it is directly related to maintaining customer satisfaction and ensuring continued sales.

Question 9

Decatron,Inc.purchased $76,500 of parts from a vendor who offered credit terms of 3/15,n/45.If Decatron takes advantage of the discount,the amount paid to the vendor (rounded to the nearest dollar)will be:
A)$74,205
B)$76,500
C)$76,271
D)cannot be determined from the information given

Accepted Answer

Decatron can take advantage of a 3% discount if they pay within 15 days. The discount amount is $76,500 * 0.03 = $2,295. Therefore, the amount paid after taking the discount is $76,500 - $2,295 = $74,205, rounded to the nearest dollar.

Question 10

Veta Corporation purchased $14,650 in supplies from a vendor offering credit terms of 2/10,n/30.If Veta takes advantage of the discount,the amount paid to the vendor (rounded to the nearest dollar)will be:
A)$14,650
B)$14,621
C)$14,357
D)$13,185

Accepted Answer

The discount is 2% of $14,650, which is $293. The amount paid after taking advantage of the discount is $14,650 - $293 = $14,357.

Question 11

Determining the credit and payment policies for customers is part of the:
A)Revenue process
B)Collection process
C)Expenditure process
D)Conversion Process

Accepted Answer

Determining the credit and payment policies for customers is part of the revenue process, as it involves establishing how and when customers will pay for products or services in order to generate revenue for the company.

Question 12

Determining the company's needs for goods and services is associated with which of the following processes?
A)Revenue process
B)Expenditure process
C)Conversion process
D)Evaluation process

Accepted Answer

The answer of Determining the company's needs for goods and...

Question 13

Selecting suppliers for a company's goods and services is part of the:
A)Revenue process
B)Expenditure process
C)Selection process
D)Conversion process

Accepted Answer

Selecting suppliers for a company's goods and services is part of the expenditure process, as it involves the procurement of resources needed by the company for its operations. The revenue process involves generating income, the selection process involves choosing employees, and the conversion process involves the transformation of inputs into outputs.

Question 14

Which of the following is not part of the expenditure process?
A)Receiving goods and services
B)Paying suppliers
C)Ordering goods and services
D)Using equipment to manufacture products

Accepted Answer

Using equipment to manufacture products is not part of the expenditure process as it refers to the production process. The expenditure process typically involves ordering goods and services, receiving them, and then paying the suppliers.

Question 15

Which of the following is not information that a company should collect from a customer when it receive an order?
A)Address
B)Inventory ordered
C)Credit information
D)How goods will reach the customer
E)All of the above should be collected

Accepted Answer

All of the options listed (Address, Inventory ordered, Credit information, How goods will reach the customer) are important pieces of information that a company should collect from a customer when receiving an order. This information is crucial for processing the order, ensuring payment, and delivering the goods to the customer.

Question 16

Delivery of goods is associated with which of the following process?
A)Revenue process
B)Expenditure process
C)Conversion process
D)Evaluation process

Accepted Answer

The answer of Delivery of goods is associated with which...

Question 17

Which of the following is not part of the conversion process?
A)Machine set ups.
B)Paying for the raw material used in production.
C)Storing the raw material used in production.
D)Storing finished manufactured goods until sold

Accepted Answer

The answer of Which of the following is not part...

Question 18

Which of the following is part of the conversion process?
A)Storing finished manufactured goods until they are sold
B)Accepting orders for manufactured goods.
C)Paying salaries for the sales personnel who sell the product
D)Pay the freight to deliver the product to the customer

Accepted Answer

The answer of Which of the following is part of...

Question 19

Norton Corporation has purchased raw materials from a vendor and was offered credit terms of 2/10,n/30.Which of the following reflects these terms?
A)20% discount (2/10)if paid within 30 days
B)2% discount if paid within 10 days
C)10% discount if paid within 30 days and 2% after 30 days
D)2% discount if paid between 10 and 30 days.

Accepted Answer

The answer of Norton Corporation has purchased raw materials from...

Question 20

Manufacturing products is associated with which of the following processes?
A)Revenue process
B)Expenditure process
C)Conversion process
D)Evaluation process

Accepted Answer

The answer of Manufacturing products is associated with which of...

Quiz 3: Operating Processes: Planning and Control

A sales invoice originates with the:

The Banner Company ordered $50,000 of fertilizer from Farmland Industries and were given terms of 2/15 net/60.Which of the following describes how soon the payment must be made in order to receive a discount and the amount of the discount available.

Which of the following is not part of the revenue process?

Which of the following would not be collected from the customer when an order is received?

Which of the following would not be collected from the customer when an order is received?

A document sent by the purchasing department to order a specific quantity of goods or services is called a:

The Quinter Corporation ordered material for its manufacturing process with a price of $75,000 and that had terms of 1/10 net/30.What is the lowest amount of cash Quinter will have to pay if it meets the terms of the discount agreement?

Which of the following is part of the revenue process?

Decatron,Inc.purchased $76,500 of parts from a vendor who offered credit terms of 3/15,n/45.If Decatron takes advantage of the discount,the amount paid to the vendor (rounded to the nearest dollar) will be:

Veta Corporation purchased $14,650 in supplies from a vendor offering credit terms of 2/10,n/30.If Veta takes advantage of the discount,the amount paid to the vendor (rounded to the nearest dollar) will be:

Determining the credit and payment policies for customers is part of the:

Determining the company's needs for goods and services is associated with which of the following processes?

Selecting suppliers for a company's goods and services is part of the:

Which of the following is not part of the expenditure process?

Which of the following is not information that a company should collect from a customer when it receive an order?

Delivery of goods is associated with which of the following process?

Which of the following is not part of the conversion process?

Which of the following is part of the conversion process?

Norton Corporation has purchased raw materials from a vendor and was offered credit terms of 2/10,n/30.Which of the following reflects these terms?

Manufacturing products is associated with which of the following processes?