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Homework answers / question archive / Alabama A&M University ACC 472 Chapter 5 1)When goods are received, the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk
Alabama A&M University
ACC 472
Chapter 5
1)When goods are received, the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.
2. The warehouse is responsible for updating the inventory subsidiary ledger.
3. The general ledger function receives the AP account summary from cash disbursements.
4. Supervision in receiving is intended to reduce the theft of assets.
5. One reason for authorizing purchases is to enable efficient inventory management.
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9.6. A purchasing system that employs electronic data interchange does not use a purchase order.
10.7. An automated cash disbursements system can yield better cash management since payments are made on time.
8. Authorization for a cash disbursement occurs in the cash disbursement department upon receipt of the supplier’s invoice.
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9. A three way match involves a purchase order, a purchase requisition, and an invoice.
10. A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.
11. Firms that wish to improve control over cash disbursements use a voucher system.
12. The warehouse is responsible for updating the inventory subsidiary ledger.
13. The general ledger function receives the AP account summary from cash disbursements.
14. Proper segregation of duties requires that the responsibility approving a payment be separated from posting to the cash disbursements journal.
15. The purpose of the purchase requisition is to
a. order goods from vendors
b. record receipt of goods from vendors
c. authorize the purchasing department to order goods
d. bill for goods delivered
16. The open purchase order file in the purchasing department is used to determine
a. the quality of items a vendor ships
b. the best vendor for a specific item
c. the orders that have not been received
d. the quantity of items received
17. The reason that a blind copy of the purchase order is sent to receiving is to
a. inform receiving when a shipment is due
b. force a count of the items delivered
c. inform receiving of the type, quantity, and price of items to be delivered
d. require that the goods delivered are inspected
18. A copy of the purchase order (PO) is sent to the
a. vendor
b. accounts payable function
c. receive goods function
d. all of the above
19. If a company uses an actual cost system, inventory records can first be updated from the
a. vendor invoice
b. purchase order
c. receiving report
d. purchase requisition
20. Goods received are inspected and counted to
a. determine that the goods are in good condition
b. determine the quantity of goods received
c. preclude payment for goods not received or received in poor condition
d. all of the above
21. The document which will close the open purchase requisition file is the
a. purchase order
b. vendor invoice
c. receiving report
d. payment voucher
22. Firms can expect that proper use of a valid vendor file will result in all of the following benefits except
a. Purchases from unapproved vendors will be prevented.
b. Purchases from fictitious vendors will be detected.
c. The most competitive price will be obtained.
d. The risk of purchasing agents receiving kickbacks and bribes will be reduced.
23. When searching for unrecorded liabilities at the end of an accounting period, the accountant would search all of the files except
a. the purchase requisition file
b. the cash receipts file
c. the purchase order file
d. the receiving report file
24. In a firm with proper segregation of duties, adequate supervision is most critical in
a. purchasing
b. receiving
c. accounts payable
d. general ledger
25. Of the following duties, it is most important to separate
a. warehouse from stores
b. warehouse from inventory control
c. accounts payable and accounts receivable
d. purchasing and accounts receivable
26. Which of the following tasks is NOT performed by the cash disbursement clerk?
a. Review the supporting documents for completeness and accuracy.
b. Prepare checks.
c. Sign checks.
d. Mark the supporting documents paid.
27. The documents in a voucher packet include all of the following except
a. a check
b. a purchase order
c. a receiving report
d. a supplier’s invoice
28. Which of the following statements is NOT correct?
a. The voucher system is used to improve control over cash disbursements.
b. The sum of the paid vouchers represents the voucher payable liability of the firm.
c. The voucher system permits the firm to consolidate payments of several invoices on one voucher.
d. Many firms replace accounts payable with a voucher payable system.
29. When purchasing inventory, which document usually triggers the recording of a liability?
a. purchase requisition
b. purchase order
c. receiving report
d. supplier’s invoice
30. Which document is least important in determining the financial value of a purchase?
a. purchase requisition
b. purchase order
c. receiving report
d. supplier’s invoice
