Question 1

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

Accepted Answer

E-payments can be settled through various methods including the ACH network, wire transfer, or debit/credit card. Option A is incorrect as float is actually eliminated for the payee, not the payer. Option B is also incorrect as EDI is still widely used for payments. Option D may not always be true as the cost savings may vary depending on factors such as transaction volume and type of payment method used.

Question 2

Which control is most likely to address the goal of input completeness?

Accepted Answer

A tickler file of open purchase orders and receiving reports helps ensure that all transactions are accounted for and processed, addressing the goal of input completeness by tracking outstanding items.

Question 3

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:

Accepted Answer

The diamond in an E-R diagram represents a relationship between two entities. In this case, the two entities are VENDORS and CASH_DISBURSEMENTS, indicating that a vendor is being sent money through the cash disbursements process. Therefore, the words "sent to" would be expected to appear in the diamond showing this relationship. The other options do not involve sending money to a vendor and are therefore not relevant to this question.

Question 4

An enterprise system may facilitate the AP/CD process by linking:

Accepted Answer

Enterprise systems integrate various business processes and operations, facilitating the Accounts Payable/Cash Disbursements (AP/CD) process by linking Purchase Orders (POs), receiving reports, invoices, and related cash disbursements, ensuring accuracy and efficiency in financial transactions.

Question 5

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

Accepted Answer

The control plan tickler file of payments due is primarily concerned with ensuring that all payments due have been fully input and recorded in the system. Therefore, the control goal that best aligns with this activity is input completeness.

Question 6

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

Accepted Answer

Independent authorization to make payment helps ensure that the payment is made only after it is approved by authorized personnel who have reviewed and validated the vendor invoice against the purchase order and other supporting documentation, thereby minimizing the risk of unauthorized or fraudulent transactions. Requisition confirmation to originating department, approve vendor selection, and independent validation of vendor invoice are also important controls in the AP/CD process, but they do not directly address the security of resources within the process.

Question 7

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

Accepted Answer

The answer of The ______________________________ department is responsible for processing...

Question 8

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

Accepted Answer

Independent authorization to make payment is a control plan that uses records in the AP master data to ensure that only authorized individuals can make payments. This helps to prevent unauthorized or fraudulent payments from being made. Independent validation of vendor invoices, match invoice, purchase order, and receiving report, and reconcile input and output batch totals are other control plans that can help to ensure the validity of payment vouchers, but they do not specifically address the authorization of individuals to make payments.

Question 9

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

Accepted Answer

Matching the invoice, purchase order, and receiving report ensures that what was ordered, received, and billed aligns, thus verifying the accuracy of the payable before processing.

Question 10

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

Accepted Answer

The answer of In an AP/CD process, a frequent exception...

Question 11

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

Accepted Answer

Matching the invoice to the purchase order and receiving report helps ensure that the goods or services were received and are being billed correctly. This step helps prevent fraudulent or inaccurate invoices from being paid. Independent validation of vendor invoices, independent authorization to make payment, and reconciling input and output batch totals are also important control activities, but they do not specifically match invoices to purchase orders and receiving reports.

Question 12

A company using a centralized 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?

Accepted Answer

Accounts payable balances are typically computed as the difference between valid invoices (amounts the company owes to its suppliers) and cash disbursements (amounts the company has already paid). This reflects the outstanding amount the company still owes.

Question 13

The resources for which the AP/CD process wants to ensure security typically do not include:

Accepted Answer

The AP/CD (Accounts Payable/Cash Disbursements) process primarily focuses on the management and security of cash outflows and related financial data. This includes securing cash (A) and accounts payable master data (B) to ensure accurate and unauthorized access is prevented. Accounts receivable master data (C), however, is more relevant to the AR/CR (Accounts Receivable/Cash Receipts) process, which deals with incoming cash flows and related data. Therefore, C is not typically a focus of the AP/CD process in terms of security.

Question 14

The AP/CD process handles the repetitive work routines of:

Accepted Answer

The AP/CD (Accounts Payable/Cash Disbursements) process primarily involves the cashier's role, as it deals with managing payments and disbursements.

Question 15

Frauds in the cash disbursement function:

Accepted Answer

Digitally signed electronic payments can help prevent cash disbursement frauds by providing a secure and traceable method of payment. While A may be true (frauds in cash disbursement may be more subtle), there is not enough information to say that they are less direct than purchasing and accounts payable frauds. B is not entirely true as checks are still commonly used.

Question 16

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

Accepted Answer

The control plan for independent validation of vendor invoices primarily aims at ensuring input validity, which means verifying that the invoices received are legitimate and correspond to actual purchases or transactions made.

Question 17

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

Accepted Answer

The answer of The notification of an obligation to pay...

Question 18

Information technology has enhanced the AP/CD process by:

Accepted Answer

The answer of Information technology has enhanced the AP/CD process...

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

The availability of cheap color printers has made it easier for criminals to create realistic looking forged checks.

Quiz 13: The Accounts Payablecash Disbursements Apcd Process