Question 1

"Resources" in the purchasing process refer to what?

Accepted Answer

A)   To tangible goods and to intangible services
B)   To tangible and intangible goods and to services
C)   To intangible goods and to tangible services
D)   To intangible goods and to services B

Question 2

Which of the following is/are the principal report(s)  required for the effective management of the purchasing process?

Accepted Answer

A)   Vendor performance.
B)   Outstanding sales orders.
C)   Discounts taken.
D)   All of the above.

Question 3

Recording a payable after the invoice is matched with other documents requires which journal entry?

Accepted Answer

A)   Debit to cash; credit to accounts payable
B)   Debit to accounts payable; credit to unbilled payables
C)   Debit to unbilled payables; credit to cash
D)   Debit to unbilled payables; credit to accounts payable

Question 4

Which is an example of an acquired good?

Accepted Answer

A)   Patents and janitorial services
B)   Computer programs and consultants
C)   Fixed assets and raw materials
D)   Catering company and accounting firms

Question 5

What is a common flow of data in the purchasing process?

Accepted Answer

A)   Sales order processing, shipping, invoicing, and receiving cash
B)   Receiving inventory, storing inventory, and shipping inventory
C)   Ordering goods, receiving, invoicing, and disbursing cash
D)   Ordering goods, shipping, and disbursing cash

Question 6

The most common deficiency in audit trails in the purchasing process is postings from the cash disbursements transaction file.

Accepted Answer

A) True 
 B)False

Question 7

The following actions are associated with which of the following triggers in the purchasing process:

Accepted Answer

A)   Associate/match purchase order, receiving report, vendor invoice.
B)   Add to open vendor invoice file.
C)   Update vendor master file.
D)   Receipt of goods.
E)   Shipment to customer. F)  Arrival of due date for payment.G)  None of the above.

Question 8

What should disbursement records include?

Accepted Answer

A)   Date, name of payee, amount of check, and description of good or service
B)   Date, name of payee, amount of check, and vendor's invoice number
C)   Date, name and number of payee, amount of check and vendor's invoice number
D)   Date, name of payee, amount, description of good or service, and vendor's invoice number

Question 9

In most AISs, the purchasing function is represented by two modules-purchase order and accounts receivable.

Accepted Answer

A) True 
 B)False

Question 10

After an organization compares the vendor invoice with the purchase order data and the receiving data, the invoice data are then keyed into which file?

Accepted Answer

A)   Open purchase order file.
B)   Open vendor invoice file.
C)   Open accounts transaction file.
D)   Open customer invoice file.

Question 11

Which of the following are the principal reports required for the effective management of the purchasing process?

Accepted Answer

A)   Vendor performance.
B)   Outstanding sales orders.
C)   Discounts taken.
D)   All of the above.

Question 12

What are two major data entry processes (think of the processes that require the most entry items per transaction) ?

Accepted Answer

A)   Creation and issuance of purchase orders; recording of cash disbursements.
B)   Creation and issuance of purchase orders; recording of merchandise received and services rendered.
C)   Recording of merchandise received and services rendered; recording of cash disbursements.
D)   Creation and issuance of purchase orders; recording of accounts payable.

Question 13

Identify and describe the two data entry points for the purchasing process that attention must be focused on.

Accepted Answer

Purchase order entry. Data entry ...

Question 14

The delivery of goods or provision of contracted services places the organization under an obligation to pay the vendor.

Accepted Answer

A) True 
 B)False  True

Question 15

Define and explain the purpose of retainages.

Accepted Answer

Retainages are most commonly required fo...

Question 16

What are the advantages of EDI over paper purchase orders?

Accepted Answer

By linking the accounting info...

Question 17

Describe some factors which may complicate competitive bidding.

Accepted Answer

Several factors may complicate competitive bidding. First, only one or two vendors may choose to respond to the solicitation. The other vendors may feel that the vendor would not be worthwhile or that they have little expectations of winning. Second, several vendors may respond, but the purchasing department may decide to look elsewhere for the required goods or services and not to accept any of the bids. Third, where complex goods or services are involved, the vendors' proposals may vary so much that the purchasing agent and requesting managers find themselves trying to compare "applies with oranges."

Question 18

What is a unique aspect of vendor maintenance?

Accepted Answer

A)   Add a new vendor
B)   1099 tasks
C)   Deactivate a vendor
D)   Tax Form 1099

Question 19

The addition of a new vendor is handled in the vendor account maintenance function of the purchase order module.

Accepted Answer

A) True 
 B)False

Question 20

Discuss risks associated with the payment of invoices (i.e., disbursement of cash) in the purchasing process.

Accepted Answer

Payment made for goods/services that are...

Exam 10: The Purchasing Process

"Resources" in the purchasing process refer to what?

Correct Answer
verified
B

Which of the following is/are the principal report(s) required for the effective management of the purchasing process?

Correct Answer
verified

Recording a payable after the invoice is matched with other documents requires which journal entry?

Correct Answer
verified

Which is an example of an acquired good?

Correct Answer
verified

What is a common flow of data in the purchasing process?

Correct Answer
verified

The most common deficiency in audit trails in the purchasing process is postings from the cash disbursements transaction file.

Correct Answer
verified

The following actions are associated with which of the following triggers in the purchasing process:

Correct Answer
verified

What should disbursement records include?

Correct Answer
verified

In most AISs, the purchasing function is represented by two modules-purchase order and accounts receivable.

Correct Answer
verified

After an organization compares the vendor invoice with the purchase order data and the receiving data, the invoice data are then keyed into which file?

Correct Answer
verified

Which of the following are the principal reports required for the effective management of the purchasing process?

Correct Answer
verified

What are two major data entry processes (think of the processes that require the most entry items per transaction) ?

Correct Answer
verified

Identify and describe the two data entry points for the purchasing process that attention must be focused on.

Correct Answer
verified
Purchase order entry. Data entry ...
View Answer

The delivery of goods or provision of contracted services places the organization under an obligation to pay the vendor.

Correct Answer
verified
True

Define and explain the purpose of retainages.

Correct Answer
verified
Retainages are most commonly required fo...
View Answer

What are the advantages of EDI over paper purchase orders?

Correct Answer
verified
By linking the accounting info...
View Answer

Describe some factors which may complicate competitive bidding.

What is a unique aspect of vendor maintenance?

Correct Answer
verified

The addition of a new vendor is handled in the vendor account maintenance function of the purchase order module.

Correct Answer
verified

Discuss risks associated with the payment of invoices (i.e., disbursement of cash) in the purchasing process.

Correct Answer
verified
Payment made for goods/services that are...
View Answer

Exam 10: The Purchasing Process

"Resources" in the purchasing process refer to what?

Correct AnswerverifiedB

Which of the following is/are the principal report(s) required for the effective management of the purchasing process?

Correct AnswerverifiedShow Answer

Recording a payable after the invoice is matched with other documents requires which journal entry?

Correct AnswerverifiedShow Answer

Which is an example of an acquired good?

Correct AnswerverifiedShow Answer

What is a common flow of data in the purchasing process?

Correct AnswerverifiedShow Answer

The most common deficiency in audit trails in the purchasing process is postings from the cash disbursements transaction file.

Correct AnswerverifiedShow Answer

The following actions are associated with which of the following triggers in the purchasing process:

Correct AnswerverifiedShow Answer

What should disbursement records include?

Correct AnswerverifiedShow Answer

In most AISs, the purchasing function is represented by two modules-purchase order and accounts receivable.

Correct AnswerverifiedShow Answer

After an organization compares the vendor invoice with the purchase order data and the receiving data, the invoice data are then keyed into which file?

Correct AnswerverifiedShow Answer

Which of the following are the principal reports required for the effective management of the purchasing process?

Correct AnswerverifiedShow Answer

What are two major data entry processes (think of the processes that require the most entry items per transaction) ?

Correct AnswerverifiedShow Answer

Identify and describe the two data entry points for the purchasing process that attention must be focused on.

Correct AnswerverifiedPurchase order entry. Data entry ...View AnswerShow Answer

The delivery of goods or provision of contracted services places the organization under an obligation to pay the vendor.

Correct AnswerverifiedTrue

Define and explain the purpose of retainages.

Correct AnswerverifiedRetainages are most commonly required fo...View AnswerShow Answer

What are the advantages of EDI over paper purchase orders?

Correct AnswerverifiedBy linking the accounting info...View AnswerShow Answer

Describe some factors which may complicate competitive bidding.

What is a unique aspect of vendor maintenance?

Correct AnswerverifiedShow Answer

The addition of a new vendor is handled in the vendor account maintenance function of the purchase order module.

Correct AnswerverifiedShow Answer

Discuss risks associated with the payment of invoices (i.e., disbursement of cash) in the purchasing process.

Correct AnswerverifiedPayment made for goods/services that are...View AnswerShow Answer

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Purchase order entry. Data entry ...
View Answer

Correct Answer
verified
True

Correct Answer
verified
Retainages are most commonly required fo...
View Answer

Correct Answer
verified
By linking the accounting info...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Payment made for goods/services that are...
View Answer