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  • Chap5 Expend1

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    Txos Vaj
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    This document contains 10 multiple choice questions about internal controls related to the purchasing, receiving, accounts payable, and cash disbursement processes. The questions cover topics such as which documents are used to ensure goods are counted upon receipt, which ledgers can be updated after goods are received, separation of duties between authorizing invoices and payments, and which documents an auditor would examine to determine all expenditures have been recorded as liabilities.

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    Cost Accounting

    Original Title

    Chap5_Expend1

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    This document contains 10 multiple choice questions about internal controls related to the purchasing, receiving, accounts payable, and cash disbursement processes. The questions cover topics such as which documents are used to ensure goods are counted upon receipt, which ledgers can be updated after goods are received, separation of duties between authorizing invoices and payments, and which documents an auditor would examine to determine all expenditures have been recorded as liabilities.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    136 views2 pages

    Chap5 Expend1

    Uploaded by

    Txos Vaj
    This document contains 10 multiple choice questions about internal controls related to the purchasing, receiving, accounts payable, and cash disbursement processes. The questions cover topics such as which documents are used to ensure goods are counted upon receipt, which ledgers can be updated after goods are received, separation of duties between authorizing invoices and payments, and which documents an auditor would examine to determine all expenditures have been recorded as liabilities.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    1.

    Which document helps to ensure that the receiving clerks actually count the number of
    goods received?
    a. packing list
    b. blind copy of purchase order
    c. shipping notice
    d. Invoice

    2. When the goods are received and the receiving report has been prepared, which ledger may be
    updated?
    a. standard cost inventory ledger
    b. inventory subsidiary ledger
    c. general ledger
    d. AP subsidiary ledger

    3. Which statement is NOT correct for an expenditure system with proper internal controls?
    a. Cash disbursements maintain the check register.
    b. AP maintains the AP subsidiary ledger.
    c. AP is responsible for paying invoices.
    d. AP is responsible for authorizing invoices.

    4. Which duties should be segregated?


    a. matching purchase requisitions, receiving reports, and invoices and authorizing
    payment
    b. authorizing payment and maintaining the check register
    c. writing checks and maintaining the check register
    d. authorizing payment and maintaining the AP subsidiary ledger

    5. Which documents would an auditor most likely choose to examine closely to ascertain that all
    expenditures incurred during the accounting period have been recorded as a liability?
    a. invoices
    b. purchase orders
    c. purchase requisitions
    d. receiving reports

    6. Which task must still require human intervention in an automated purchases / cash
    disbursements system?
    a. determination of inventory requirements
    b. preparation of a purchase order
    c. preparation of a receiving report
    d. preparation of a check register

    7. Which one of the following departments does not have a copy of the purchase order?
    a. the purchasing department
    b. the receiving department
    c. accounts payable
    d. general ledger
    8. Which document typically triggers the process of recording a liability?
    a. purchase requisition
    b. purchase order
    c. receiving report
    d. supplier’s invoice

    9. Which of the following tasks should the cash disbursement clerk NOT perform?
    a. review the supporting documents for completeness and accuracy
    b. prepare checks
    c. approve the liability
    d. mark the supporting documents paid

    10. Which of the following is true?


    a. The cash disbursement function is part of accounts payable.
    b. Cash disbursements is an independent accounting function.
    c. Cash disbursements is a treasury function.
    d. The cash disbursement function is part of the general ledger department.

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