Question 1

Payments recorded in the wrong vendor account may result in duplicate payments to vendors. Choose the best control activity to address this risk.

Accepted Answer

A three-way match is a good control for ensuring that payments are for received goods and are authorized, but it doesn't directly address the risk of recording payments in the wrong vendor account. Comparing the vendor ID in the cash payments journal with the vendor ID on supporting documentation and payment vouchers (Choice C) directly addresses the risk of misposting payments to the wrong vendor account by ensuring that each payment is matched to the correct vendor's documentation.

Question 2

Payments recorded in the wrong vendor account may result in duplicate payments to vendors. Choose the best control activity to address this risk.

Accepted Answer

The best control activity to address the risk of payments recorded in the wrong vendor account is to compare the vendor ID in the cash payments journal with the vendor ID on supporting documentation and payment vouchers. This ensures that payments are made to the correct vendor as per the documentation.

Question 3

Payments recorded in the wrong vendor account may result in duplicate payments to vendors. Choose the best control activity to address this risk.

Accepted Answer

Reconciliation of vendor statements with the accounts payable subsidiary ledger helps identify discrepancies such as payments recorded in the wrong vendor account, thus preventing duplicate payments.

Question 4

Payments made to unauthorized or nonexistent purchases may result in fraudulent misappropriation of cash. Choose the best control activity to address this risk.

Accepted Answer

A three-way match against the purchase order, receiving report, and vendor's invoice is a control activity that directly addresses the risk of payments made to unauthorized or nonexistent purchases by ensuring that a purchase was authorized, received, and correctly invoiced before payment is made.

Question 5

Payments made to unauthorized or nonexistent purchases may result in fraudulent misappropriation of cash. Choose the best control activity to address this risk.

Accepted Answer

Comparison of payment information with purchase order and receiving report information ensures that payments are made only for authorized and received goods or services, directly addressing the risk of fraudulent misappropriation of cash related to unauthorized or nonexistent purchases.

Question 6

Invoices paid twice may result in overpayments to vendors. Choose the best control activity to address this risk.

Accepted Answer

Option C directly addresses the risk of invoices being paid twice by ensuring that once an invoice and its supporting documentation have been used for payment, they are marked in such a way that prevents them from being presented for payment again. This control activity effectively reduces the risk of overpayments.

Question 7

The use of cash not being optimized may result in loss of assets and poor cash management. Choose the best control activity to address this risk.

Accepted Answer

Taking advantage of supplier discounts can optimize cash use by reducing expenses, thus improving cash management and preserving assets.

Question 8

There are five modules in the ERP system cloud map that support the specific purchasing and payment business processes. Choose one of the modules from the list below.

Accepted Answer

Inventory management is a key module in ERP systems that directly supports purchasing and payment processes by tracking stock levels, orders, sales, and deliveries. It helps businesses manage their inventory levels and can integrate with purchasing to automate reordering and payment processes.

Question 9

There are five modules in the ERP system cloud map that support the specific purchasing and payment business processes. Choose one of the modules from the list below.

Accepted Answer

Shipping/Receiving is directly involved in the purchasing and payment processes within an ERP system, as it deals with the receipt of goods and services that are being purchased, which is a critical part of managing purchases and payments.

Question 10

There are five modules in the ERP system cloud map that support the specific purchasing and payment business processes. Choose one of the modules from the list below.

Accepted Answer

Fixed Assets module supports specific purchasing and payment business processes by managing the lifecycle of assets from acquisition through disposal, which often involves purchasing and payment activities.

Question 11

There are five modules in the ERP system cloud map that support the specific purchasing and payment business processes. Choose one of the modules from the list below.

Accepted Answer

Accounts Payable is directly involved in the purchasing and payment processes within an ERP system, as it deals with managing the company's obligations to pay off short-term debts to its creditors or suppliers.

Question 12

The data collected during the purchasing of raw materials can be converted into several purchasing reports. Below is a list of some of those reports. Which report is summarized to show what products have been received within a period of time?

Accepted Answer

The "Product received - by time" report summarizes the products that have been received within a specific period, making it the correct answer. This report focuses on tracking the arrival of goods over time, which is essential for inventory management and planning.

Question 13

The data collected during the purchasing of raw materials can be converted into several purchasing reports. Below is a list of some of those reports. Which report lists the total number of purchase requisitions that have been purchased or remain outstanding within a period of time?

Accepted Answer

The report that lists the total number of purchase requisitions that have been purchased or remain outstanding within a period of time is the "Purchase requisitions filled and open" report. This report specifically tracks the status of purchase requisitions, indicating which ones have been fulfilled and which ones are still pending.

Question 14

The data collected during the purchasing of raw materials can be converted into several purchasing reports. Below is a list of some of those reports. Which report lists the total number of purchase orders that have been completed by suppliers and vendors or remain outstanding within a period of time?

Accepted Answer

Purchase orders filled and open report lists the total number of purchase orders that have been completed by suppliers and vendors or remain outstanding within a period of time.

Question 15

The data collected during the purchasing of raw materials can be converted into several purchasing reports. Below is a list of some of those reports. Which report lists days purchase orders have been outstanding classified in buckets?

Accepted Answer

Purchase orders aging reports list days purchase orders have been outstanding, typically classified in buckets such as 0-30 days, 31-60 days, etc., to help manage and track the age of each order.

Question 16

The data collected during the purchasing of raw materials can be converted into several purchasing reports. Below is a list of some of those reports. Which report lists the items on backorder from suppliers and vendors?

Accepted Answer

The Backorder report specifically lists items that are on backorder from suppliers and vendors, detailing what hasn't been shipped yet due to unavailability.

Question 17

The data collected during the purchasing of raw materials can be converted into several purchasing reports. Below is a list of some of those reports. Which report is a master list of all approved vendors from the vendor master table?

Accepted Answer

The main vendor table report is a master list of all approved vendors from the vendor master table, providing comprehensive information about each vendor that an organization has approved for purchasing.

Question 18

The raw material purchasing reports can provide management with insight into how to improve processes. Additional raw materials purchasing analytics can be used for decision making and dashboards. Which raw material purchasing analytic describes how long it took to receive an order, quantity of goods received, and condition of goods received?

Accepted Answer

Vendor performance analytics typically include metrics on delivery times, quantities received compared to quantities ordered, and the condition of goods upon arrival, which align with the description given.

Question 19

The raw material purchasing reports can provide management with insight into how to improve processes. Additional raw materials purchasing analytics can be used for decision making and dashboards. Which raw material purchasing analytic compares the goods received to the approved purchase order?

Accepted Answer

Receiving reconciliation is the process of comparing the goods received to the approved purchase order to ensure that what was ordered was actually received, both in terms of quantity and quality. This is a crucial step in verifying that the procurement process is functioning as intended and that suppliers are fulfilling their commitments.

Question 20

The raw material purchasing reports can provide management with insight into how to improve processes. Additional raw materials purchasing analytics can be used for decision making and dashboards. Which raw material purchasing analytic analyzes vendor price increases greater than a threshold amount over a period of time?

Accepted Answer

Vendor prices analytics specifically focus on analyzing the prices of goods or services provided by vendors, including tracking changes in these prices over time. When it analyzes vendor price increases greater than a threshold amount over a period of time, it helps management understand how vendor prices are changing and potentially negotiate better terms or seek alternative suppliers.

Quiz 10: Purchasing and Payments Process

Payments recorded in the wrong vendor account may result in duplicate payments to vendors. Choose the best control activity to address this risk.

Payments recorded in the wrong vendor account may result in duplicate payments to vendors. Choose the best control activity to address this risk.

Payments recorded in the wrong vendor account may result in duplicate payments to vendors. Choose the best control activity to address this risk.

Payments made to unauthorized or nonexistent purchases may result in fraudulent misappropriation of cash. Choose the best control activity to address this risk.

Payments made to unauthorized or nonexistent purchases may result in fraudulent misappropriation of cash. Choose the best control activity to address this risk.

Invoices paid twice may result in overpayments to vendors. Choose the best control activity to address this risk.

The use of cash not being optimized may result in loss of assets and poor cash management. Choose the best control activity to address this risk.

There are five modules in the ERP system cloud map that support the specific purchasing and payment business processes. Choose one of the modules from the list below.

There are five modules in the ERP system cloud map that support the specific purchasing and payment business processes. Choose one of the modules from the list below.

There are five modules in the ERP system cloud map that support the specific purchasing and payment business processes. Choose one of the modules from the list below.

There are five modules in the ERP system cloud map that support the specific purchasing and payment business processes. Choose one of the modules from the list below.

The data collected during the purchasing of raw materials can be converted into several purchasing reports. Below is a list of some of those reports. Which report is summarized to show what products have been received within a period of time?

The data collected during the purchasing of raw materials can be converted into several purchasing reports. Below is a list of some of those reports. Which report lists the total number of purchase requisitions that have been purchased or remain outstanding within a period of time?

The data collected during the purchasing of raw materials can be converted into several purchasing reports. Below is a list of some of those reports. Which report lists days purchase orders have been outstanding classified in buckets?

The data collected during the purchasing of raw materials can be converted into several purchasing reports. Below is a list of some of those reports. Which report lists the items on backorder from suppliers and vendors?

The data collected during the purchasing of raw materials can be converted into several purchasing reports. Below is a list of some of those reports. Which report is a master list of all approved vendors from the vendor master table?

The raw material purchasing reports can provide management with insight into how to improve processes. Additional raw materials purchasing analytics can be used for decision making and dashboards. Which raw material purchasing analytic compares the goods received to the approved purchase order?