Page 274 - Accounting Information Systems

C H A P TER 5 The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures 245

Multiple-Choice Questions

1. Which document helps to ensure that the receiv- a. invoices
ing clerks actually count the number of goods b. purchase orders
received?
c. purchase requisitions
a. packing list
d. receiving reports
b. blind copy of purchase order
6. Which task must still require human intervention
c. shipping notice in an automated purchases/cash disbursements
d. invoice system?
2. When the goods are received and the receiving a. determination of inventory requirements
report has been prepared, which ledger may be b. preparation of a purchase order
updated?
c. preparation of a receiving report
a. standard cost inventory ledger
d. preparation of a check register
b. inventory subsidiary ledger
7. Which one of the following departments does not
c. general ledger have a copy of the purchase order?
d. accounts payable subsidiary ledger a. the purchasing department
3. Which statement is NOT correct for an b. the receiving department
expenditure system with proper internal
c. accounts payable
controls?
d. general ledger
a. Cash disbursements maintain the check
register. 8. Which document typically triggers the process of
recording a liability?
b. Accounts payable maintains the accounts pay-
able subsidiary ledger. a. purchase requisition
c. Accounts payable is responsible for paying b. purchase order
invoices. c. receiving report
d. Accounts payable is responsible for authoriz- d. supplier’s invoice
ing invoices. 9. Which of the following tasks should the cash dis-
4. Which duties should be segregated? bursement clerk NOT perform?
a. matching purchase requisitions, receiving a. review the supporting documents for com-
reports, and invoices and authorizing pleteness and accuracy
payment b. prepare checks
b. authorizing payment and maintaining the check c. approve the liability
register
d. mark the supporting documents paid
c. writing checks and maintaining the check
10. Which of the following is true?
register
a. The cash disbursement function is part of
d. authorizing payment and maintaining the
accounts payable.
accounts payable subsidiary ledger
b. Cash disbursements is an independent
5. Which documents would an auditor most
accounting function.
likely choose to examine closely to ascertain
that all expenditures incurred during the c. Cash disbursements is a treasury function.
accounting period have been recorded as d. The cash disbursement function is part of the
a liability? general ledger department.