Question 1

The acquisition/payment transaction cycle may also be called the expenditures cycle.

Accepted Answer

The acquisition/payment transaction cycle is often referred to as the expenditures cycle because it involves processes related to purchasing goods or services and making payments, which are expenditures for a business.

Question 2

The acquisition/payment process includes the activities associated with buying maintaining and paying for goods and services needed by enterprises.

Accepted Answer

The acquisition/payment process involves all steps from purchasing to maintaining and paying for goods and services required by a business.

Question 3

Many activities in the acquisition/payment process are the same activities as in the sales/collection process, only viewed from the buyer's perspective instead of from the seller's view.

Accepted Answer

The acquisition/payment process and the sales/collection process involve similar activities such as ordering, invoicing, and payment, but they are viewed from different perspectives: the buyer's and the seller's, respectively.

Question 4

Because the acquisition/payment process involves no resource exchanges with external business partners, it falls entirely within the enterprise circle of the value system level diagram.

Accepted Answer

The acquisition/payment process involves the flow of goods and services from vendors to the enterprise and also the flow of cash from the enterprise to vendors.

Question 5

In a value chain model, cash is typically made available to the acquisition/payment process by the financing process.

Accepted Answer

The financing process in a value chain model is responsible for securing funds, which are then used to support other processes, including acquisition/payment.

Question 6

Most enterprises explicitly track labor operations of purchasing agents and thereby match the use of their labor to the corresponding acquisition event that increases goods in the acquisition/payment process.

Accepted Answer

Typically the only economic decrement event included in the acquisition/payment process is the cash disbursement. Tracking of labor operations is not usually considered cost beneficial.

Question 7

In the acquisition/payment process, purchase requisitions are instigation events.

Accepted Answer

Purchase requisitions are considered instigation events because they initiate the process of acquiring goods or services by formally requesting them.

Question 8

In the acquisition/payment business process, a mutual commitment event does not always happen at a discrete point in time; often it involves a series of activities.

Accepted Answer

A mutual commitment event in the acquisition/payment process can involve negotiations, approvals, and other activities that occur over a period of time rather than at a single moment.

Question 9

In the acquisition/payment process, information captured on a purchase order document is usually identical (i.e., each contains exactly the same information, no more, no less) to the information captured in the purchase order table in a REA based relational database.

Accepted Answer

While the purchase order document usually includes all the information captured in a purchase order table, the document also includes information that is usually stored in resource, agent, and relationship tables.

Question 10

In the acquisition/payment process, a rental contract is an economic decrement event.

Accepted Answer

A rental contract in the acquisition/payment process is a commitment to increase a resource.

Question 11

In the acquisition/payment process, a rental acquisition begins when the right to temporary possession of the rented goods transfers from the supplier to the enterprise and ends when possession of the goods transfers back from the enterprise to the supplier.

Accepted Answer

The rental acquisition process involves the temporary transfer of possession of goods from the supplier to the enterprise, and it concludes when the goods are returned to the supplier.

Question 12

The receiving report document is the document that most closely corresponds to the purchase economic increment event in the acquisition/payment process.

Accepted Answer

The receiving report is used to document the receipt of goods or services, which corresponds to the purchase economic increment event in the acquisition/payment process.

Question 13

In the acquisition/payment process, a request to return goods notifies a supplier of the enterprise's dissatisfaction with goods and asks permission to return those goods instead of paying for them or in exchange for a refund.

Accepted Answer

A request to return goods is a formal communication to the supplier indicating issues with the received goods and seeking approval to return them for a refund or credit.

Question 14

A cash refund in exchange for the return of defective goods is the most common economic increment event in the acquisition/payment process.

Accepted Answer

Purchase is the most common economic increment event in the acquisition/payment process. Cash refunds are economic decrement reversal events and are less common.

Question 15

The resources and resource types most commonly present in the acquisition/payment process are inventory, cash, and operating assets such as suppliers, property, plant, and equipment.

Accepted Answer

The question states that "The resources and resource types most commonly present in the acquisition/payment process are inventory, cash, and operating assets such as suppliers, property, plant, and equipment." This statement is true because these are all resources that are typically involved in the acquisition and payment of goods and services.

Question 16

An example of a resource-related information need in the acquisition/payment process is the average age of an enterprise's machinery on a specified date.

Accepted Answer

The average age of machinery is a resource-related information need as it pertains to the management and assessment of the enterprise's physical assets.

Question 17

To generate a list of all purchase agents and their telephone numbers, a query developer should focus on the resource entities in the acquisition/payment process.

Accepted Answer

The query developer should focus on the agent entities in the acquisition/payment process.

Question 18

If a purchase occurs without corresponding cash disbursements or purchase returns that total the purchase amount, a claim exists that is typically called accounts payable.

Accepted Answer

Accounts payable represent a liability for goods or services received but not yet paid for, indicating an obligation to pay the supplier in the future.

Question 19

To determine which tables contain cash disbursements that applied to acquisitions and calculate the applicable cash disbursement total, one should examine the duality relationship in the acquisition/payment process.

Accepted Answer

The duality relationship in the acquisition/payment process links acquisitions to their corresponding cash disbursements, allowing for the identification and calculation of applicable cash disbursement totals.

Question 20

A query to calculate the average number of days to fulfill purchase requisitions should focus on the fulfillment relationship between purchase order and acquisition in the acquisition/payment process.

Accepted Answer

Such a query should focus on the fulfillment relationship between purchase requisition and purchase order.

Quiz 9: The Acquisitio/Payment Business Process