Professional Documents
Culture Documents
Chap5 Expend1
Chap5 Expend1
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.
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