Chapter 10 CIS Quiz Bee

Which document helps to ensure that the receiving clerks actually count the number of goods received?

• packing  list

• blind  copy  of  purchase  order

• shipping  notice

• invoice

A three way match involves a purchase order, a purchase requisition, and an invoice

• True

• False

When the goods are received and the receiving report has been prepared, which ledger may be updated?

• standard  cost  inventory  ledger

• inventory  subsidiary  ledger

• general  ledger

• accounts  payable  subsidiary  ledger

The purpose of the purchase order is to

• order goods from vendors

• record receipt of goods from vendors

• authorize the purchasing department to order goods

• approve payment for goods received

Which  statement  is  not  correct  for an  expenditure system  with  proper  internal  controls?

• Cash disbursements maintain the check register.

• Accounts payable maintains the accounts payable  subsidiary  ledger.

• Accounts payable is responsible for   paying invoices.

• Accounts  payable  is  responsible  for  authorizing  invoices.

The financial value of a purchase is determined by reviewing the

• packing slip

• purchase requisition

• receiving report

• supplier’s invoice

Which  duties  should  be  segregated?

• matching   purchase   requisitions,   receiving   reports,  and  invoices  and  authorizing  payment

• authorizing  payment and  maintaining the check register

• writing checks and    maintaining    the check register

• authorizing  payment  and  maintaining  the accounts  payable  subsidiary  ledger

When purchasing inventory, which document usually triggers the recording of a liability?

• purchase requisition

• purchase order

• receiving report

• supplier’s invoice

Which documents would an auditor most likely choose to examine closely in order to ascertain that all expenditures incurred during the accounting period have been recorded as a liability?

• invoices

• purchase  orders

• purchase  requisitions

• receiving  reports

Because of time delays between receiving inventory and making the journal entry

• liabilities are usually understated

• liabilities are usually overstated

• liabilities are usually correctly stated

• none of the above