Question 1

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

Accepted Answer

Independent authorization to make payment is the most effective control in ensuring the security of resources within the AP/CD process. This ensures that the payment is only made when authorized by someone independent of the process, reducing the risk of fraudulent payments. Requisition confirmation and vendor selection approval are important controls, but they do not address the risk of unauthorized payments. Independent validation of vendor invoice may help to prevent errors or discrepancies, but it does not address the risk of fraudulent payments.

Question 2

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

Accepted Answer

Matching invoice, purchase order, and receiving report ensures that the invoice is valid, accurate and has been received before payment is made. Independent validation of vendor invoices (A) and independent authorization to make payment (C) can also be part of the control plan but are not specifically related to matching the invoice, purchase order, and receiving report. Reconciling input and output batch totals (D) is part of general ledger control but is not specifically related to the AP application.

Question 3

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 4

Information technology has enhanced the AP/CD process by:

Accepted Answer

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

Question 5

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 entities. In this case, the accounts payable/cash disbursements process involves a relationship between VENDORS and CASH_DISBURSEMENTS. The word "sent to" indicates that the flow of cash is from the company to the vendor, which is reflected in the direction of the arrow in the E-R diagram. Therefore, the correct choice is C (VENDORS and CASH_DISBURSEMENTS).

Question 6

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 7

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

Accepted Answer

E-payments can be settled through the Automated Clearing House (ACH) network, wire transfer, or by debit or credit card. Option A is incorrect because float can still be present in e-payment systems, depending on the processing time. Option B is incorrect because the use of Electronic Data Interchange (EDI) for payments has actually increased in recent years. Option D is incorrect because the cost savings of using e-payments vary depending on the specific system being used.

Question 8

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 forgeries of checks.

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

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 give authorization to the cash disbursements computer program to make a payment. It ensures that only authorized personnel have access to make payments and helps prevent fraudulent or erroneous payments. The other control plans listed do not specifically address payment voucher input validity.

Question 11

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

Accepted Answer

The answer of The AP/CD process handles the repetitive work...

Question 12

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

Accepted Answer

The answer of Which control is most likely to address...

Question 13

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 14

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 15

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 routine...

Question 16

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 17

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 18

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 19

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 20

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.

Quiz 13: The Accounts Payablecash Disbursements Apcdprocess