Deck 9: Integrated Process

Question 1

Which of the following statements regarding the goods receipt step of the external procurement process are TRUE?

A)A goods receipt is created against an STO.
B)This step results in both an FI and a material document.
C)A goods receipt is created against a PO.
D)An FI document is created,but there is no GL impact.
E)Only one material document is created.

Answer 1

B,C,E

Question 2

Which of the following statements apply to the goods issue step of the internal procurement process?

A)Both material and FI documents are created.
B)A material document is created,but FI documents are not.
C)The status of the materials in the receiving plant is "stock in transit."
D)The status of the materials in the receiving plant is "unrestricted use."
E)The material document includes two line items for each location.

Answer 2

A,C,E

Question 3

What are the GL entries when a customer invoice is generated?

A)The accounts payable reconciliation account is debited.
B)The accounts receivable reconciliation account is debited.
C)The customer subledger account is debited.
D)The revenue account is credited.
E)The vendor subledger account is credited.

Answer 3

B,C,D

Question 4

Which of the following statements about an STO are NOT TRUE?

A)It can trigger the fulfillment process.
B)It can trigger the production process.
C)A goods issue can be posted against an STO.
D)A goods receipt can be posted against an STO.
E)A purchase order can be posted against an STO.

Question 5

The shipping step involves which of the following activities?

A)Creating a delivery document.
B)Authorizing picking,packing,and goods issue.
C)Processing a purchase order.
D)Authorizing picking,packing,and goods receipt.
E)Creating a transfer order.

Question 6

Which of the following statements regarding WM steps related to procurement are NOT TRUE?

A)A transfer requirement is created.
B)Goods are moved from storage bins to an interim storage area.
C)Goods are moved from an interim storage area into storage bins.
D)A transfer order is created against an STO.
E)A PO triggers the WM process.

Question 7

The sales order processing step in the fulfillment process includes which of the following activities?

A)Materials are shipped.
B)An availability check is executed.
C)A goods receipt is posted.
D)A sales order is created.
E)A goods issue is posted.

Question 8

Which of the following statements regarding the goods receipt step of the internal procurement process are TRUE?

A)Both material and FI documents are created.
B)A material document is created,but an FI document is not.
C)The status of the materials in the receiving plant is "stock in transit."
D)The status of the materials in the receiving plant is "unrestricted use."
E)The material document includes two line items,one for the sending location plant)and one for the receiving location.

Question 9

Which of the following are steps in the warehouse management process?

A)Create goods receipt
B)Confirm transfer order
C)Create stock transfer order
D)Create transfer requirement
E)Post goods issue

Question 10

Which of the following processes can result in the creation of a financial FI)document?

A)Warehouse management
B)Fulfillment
C)Inventory management
D)Production
E)Procurement

Question 11

Which of the steps listed below are part of the procurement process?

A)Create transfer order
B)Create requisition
C)Send payment
D)Process sales order
E)Process STO

Question 12

In which of the following steps in the production process is a material document created?

A)Goods receipt
B)Goods issue
C)Confirmation
D)Request production
E)Availability check

Question 13

Identify the steps in the fulfillment process for which an FI document is created.

A)Goods receipt
B)Goods issue
C)Billing
D)Purchase order
E)Receive invoice

Question 14

Which of the following impacts to the general ledger accounts result when a company pays a vendor invoice?

A)The bank account is credited.
B)The vendor subledger account is debited.
C)The bank account is debited.
D)The vendor subledger account is credited.
E)The accounts payable reconciliation account is debited.

Question 15

Which of the following are strategies for acquiring materials?

A)Internally from a vendor
B)Externally from a storage location
C)Externally from a plant
D)Internally from another plant
E)Externally from a vendor

Question 16

Which of the following statements regarding WM steps related to fulfillment are TRUE?

A)A transfer order is created based on a delivery document.
B)Goods are moved from an interim storage area into storage bins.
C)A transfer order is created against an STO.
D)A PO triggers the WM process.
E)Goods are moved from storage bins to an interim storage area.

Question 17

Which of the following statements concerning the procurement process are TRUE?

A)Vendor billing is one of the steps.
B)Only one FI document is created.
C)Goods receipt is one of the steps.
D)The send payment step involves creation of an FI document.
E)Two material documents are created.

Question 18

Which of the following processes can have a controlling CO)impact?

A)Warehouse management
B)Fulfillment
C)Inventory management
D)Production
E)Procurement

Question 19

Which of the steps listed below are part of the fulfillment process.

A)Purchase order sent to vendor
B)Goods receipt posted
C)Billing
D)STO processing
E)Sales order processing

Question 20

Identify the steps in the procurement process for which an FI document is created.

A)Goods receipt
B)Goods issue
C)Billing
D)Purchase order
E)Receive invoice

Question 21

Which statement about the production process is TRUE?

A)It is triggered by the WM process.
B)The first step is an availability check.
C)The last step is confirmation.
D)It involves issuing materials to the production order.
E)No FI documents are created.

Question 22

After a transfer order related to fulfillment has been confirmed,which of the following steps is most likely to occur next?

A)Billing
B)Payment
C)Creating a transfer requirement
D)Shipping
E)Posting a goods receipt

Question 23

In which of the following processes is a material document NOT created?

A)Warehouse management
B)Fulfillment
C)Inventory management
D)Production
E)Procurement

Question 24

A company has decided to acquire materials via internal procurement.What is the likely next step?

A)Create an STO
B)Create a purchase order
C)Create a sales order
D)Initiate shipping
E)Post a goods receipt

Question 25

The goods receipt step in production involves which of the following GL entries?

A)Finished goods inventory account is debited.
B)The manufacturing output settlement account is credited.
C)Finished goods inventory account is credited.
D)The COGS account is debited.
E)The GR/IR account is credited.

Question 26

Identify the step in the procurement process for which a material document is created.

A)Goods issue
B)Goods receipt
C)Transfer order
D)STO
E)Create requisition

Question 27

Shipping,billing,and payment are steps in which process?

A)Warehouse management
B)Fulfillment
C)Inventory management
D)Production
E)Procurement

Question 28

In a make-to-order strategy the production of finished goods or semifinished goods is most frequently triggered by a

A)Sales order.
B)Purchase order.
C)Transfer order.
D)Production order.
E)Goods issue.

Question 29

Identify the GL entries that are posted when a payment is sent to a vendor.

A)The vendor account is credited,
B)The vendor account is debited.
C)The accounts payable reconciliation account is debited.
D)The bank account is credited.
E)The bank account is debited.

Question 30

Calculate the financial effect of a goods issue posting based on the following data.Procurement type: Internal Materials: Pens
Quantity shipped: 100
Valuation price at the receiving plant for one pen): $2.30
Valuation price at the sending plant for one pen): $2.40

A)Debit GR/IR,credit inventory for $230.00.
B)Debit inventory,credit COGS for $240.00.
C)Debit inventory,credit GR/IR for $230.00.
D)Debit and credit to the inventory account for $240.00.
E)No financial effect takes place at this step,so no FI document is created.

Question 31

Receive invoice is a step in which process?

A)Warehouse management
B)Fulfillment
C)Inventory management
D)Production
E)Procurement

Question 32

What is the FI effect of a goods receipt posting in the external procurement process?

A)Debit GR/IR,credit inventory
B)Debit inventory,credit COGS
C)Debit inventory,credit GR/IR
D)Debit and credit to the inventory account
E)No financial effect takes place at this step,so no FI document is created.

Question 33

In the procurement process,a purchase requisition is created during which step?

A)Availability check
B)Sales order processing
C)Requirements determination
D)Purchase order processing
E)Source of supply determination

Question 34

In which of the following processes is a transfer order TO)created?

A)Warehouse management
B)Fulfillment
C)Inventory management
D)Production
E)Procurement

Question 35

In a plant-to-plant movement,valuation occurs at

A)Goods issue and at the valuation price of the issuing plant.
B)Goods receipt and at the valuation price of the issuing plant.
C)Goods issue and at the valuation price of the receiving plant.
D)Goods receipt and at the average price of the receiving plant.
E)Goods issue and at the average price of the receiving plant.

Question 36

Which one of the steps listed most likely would be the final step in the procurement process?

A)Confirm transfer order
B)Goods receipt
C)Goods issue
D)STO
E)Send payment

Question 37

Identify the step in the fulfillment process for which a material document is created.

A)Goods issue
B)Goods receipt
C)Transfer order
D)STO
E)Create requisition

Question 38

Which of the following statements about the integrated process are TRUE?

A)The process is triggered by a customer order.
B)The fulfillment process is suspended when the needed raw materials are not available.
C)The production process is suspended when the needed raw materials are not available.
D)The production process continues when the finished products become available.
E)The fulfillment process continues when the finished products become available.

Question 39

Which one of the following activities triggers the shipping step goods issue)in the fulfillment process?

A)Goods receipt is posted
B)Availability check is initiated
C)Transfer order is created
D)Picking is completed
E)STO is created

Question 40

Which one of the following statements about the goods receipt step in the procurement process is TRUE?

A)No FI or material documents are created.
B)One material document is created,but no FI documents are.
C)One FI document created,but no material documents are.
D)Both FI and material documents are created.
E)None of the above

Question 41

What is the CO impact in the confirmation step of the production process?

A)Labor costs are transferred from the work centers to the production order.
B)Material costs are debited to the production order as actual costs.
C)The finished goods inventory account is debited.
D)The manufacturing output settlement account is credited.
E)The production order is credited by the value of the finished goods.

Question 42

The fulfillment process can trigger the procurement process.

Question 43

There is a controlling CO)impact in the goods issue step of the fulfillment process.

Question 44

What is the general ledger impact when a transfer requirement is created in the warehouse management process?

A)Debit GR/IR,credit inventory
B)Debit inventory,credit COGS
C)Debit inventory,credit GR/IR
D)Debit and credit to the inventory account
E)There is no impact on the GL.

Question 45

The confirmation of the transfer order TO)is executed during the warehouse management process.

Question 46

The warehouse management process always results in the creation of a material document.

Question 47

Sell-from-stock strategy uses inventory as a buffer between processes to de-couple them or to make them less dependent on each other.

Question 48

Calculate the debit and credit for the goods issue step in the fulfillment process,based on the following data.Note: You need to pick the right price for this calculation.) Materials sold trading goods): Printers
Quantities sold: 100
Price for customer: $120.00
Current average moving price: $85.00
Price from vendor: $84.00
Average price 30 days before customer order was placed: $86.00

A)$12,000
B)$8,500
C)$8,400
D)$8,600
E)$0.00

Question 49

The warehouse management process sometimes involves the creation of an FI document.

Question 50

Creating a purchase order is a step in the fulfillment process.

Question 51

In WM steps related to fulfillment,a transfer order is created based on an)

A)Purchase order.
B)Goods issue.
C)Delivery document.
D)Goods receipt.
E)STO.

Question 52

What is the general ledger impact when a vendor invoice is received and verified?

A)Debit GR/IR,credit vendor subledger account
B)Debit inventory,credit GR/IR
C)Debit vendor subledger account,credit COGS
D)Debit inventory,credit vendor subledger account
E)Debit vendor subledger account,debit GR/IR

Question 53

Sales order processing and payment are steps in the procurement process.

Question 54

What is the GL entry when a company receives a payment from a customer?

A)Debit revenue,credit customer
B)Debit customer,credit revenue
C)Debit bank,credit customer,credit accounts reconciliation account
D)Debit accounts reconciliation account,credit bank
E)Debit accounts reconciliation account,debit customer,credit bank

Question 55

There is a controlling CO)impact in the billing step of the procurement process.

Question 56

What is the general ledger impact of the goods issue step in the fulfillment process?

A)Debit GR/IR,credit inventory
B)Debit inventory,credit COGS
C)Debit and credit to the inventory account
D)Debit COGS,credit inventory
E)No financial effect takes place at this step,so no FI document is created.

Question 57

The availability check in the fulfillment process can trigger the procurement process.

Question 58

The production process can trigger the procurement process.

Question 59

The goods issue step in in the fulfillment process results in the creation of FI and material documents and also has a CO impact.

Question 60

What is the general ledger impact of the goods receipt step during a stock transfer?

A)Debit GR/IR,credit inventory
B)Debit inventory,credit COGS
C)Debit and credit to the inventory account
D)Debit COGS,credit inventory
E)There is no GL impact.

Question 61

At the time of a goods receipt in an internal procurement process,both material and FI documents are created.

Question 62

If the storage location is warehouse managed,then a goods receipt will trigger the WM processes.

Question 63

No material documents are created during WM processes.

Question 64

In the internal procurement process,the debits and credits for the GL account postings at the goods issue step are calculated based on the valuation price at the sending plant.

Question 65

When a payment from a customer is received,an automatic posting is made to the accounts receivable reconciliation account.

Question 66

At the time of a goods receipt in an external procurement process,the material document consists of a single line item.

Question 67

When a payment to a vendor is initiated,the bank account will be debited by the amount of the payment.

Question 68

A goods receipt moves materials from "unrestricted use" to "in transit" status.

Question 69

In external procurement,materials have the status "stock in transit" at the time of the goods issue step for the receiving plant.

Question 70

There is a FI impact at the time of the goods receipt during a stock transfer.

Question 71

A purchase requisition is converted to a PO in the purchase order processing step in the procurement process.

Question 72

When an invoice from a vendor is received,a credit entry is posted to the GR/IR account.

Question 73

At the time of goods receipt in an internal procurement process,the material document consists of two lines for each of the plants.

Question 74

The amount of the debit and credit for the goods issue step in fulfillment is based on current moving average price of the material.

Question 75

The shipping step involves creating a delivery document.

Question 76

The delivery document is a request to move materials from one plant to another.

Question 77

The last step of the production process is always goods issue.