BT11.3

What does "a recommended approach for conducting a task" describe?

Answer explanation

"A recommended approach for conducting a task" describes a guideline, as it provides a framework or set of instructions to follow for effective task completion.

What does GDN abbreviation describe?

Answer explanation

The extract describes a procedure, as it outlines the specific steps the clerk takes to calculate gross pay by multiplying hours worked by the hourly rate.

In which of the following stages in purchasing cycle supplier bills company for goods/services?

• Payment made

• Invoice recorded

• Invoice received

• Goods received

• Ordering

Answer explanation

The supplier bills the company when the 'Invoice received' stage occurs, as this is when the company acknowledges the receipt of the invoice for the goods/services provided.

The most unsecure way to verify payments to staff is by:

• authorising payments before they are made

• using BACS transfers

• paying people in cash

• asking staff to visit the accounts office to receive their wages

Answer explanation

Paying people in cash is the most unsecure method as it lacks a paper trail, making it difficult to verify transactions and increasing the risk of fraud compared to other payment methods.

Which of the following would ensure that the sales cycle results in prompt payment?

• Orders are processed by qualified personnel only

• Checking the goods are in inventory before dispatching them

• Each item has its own code

• Checking the creditworthiness of the customer

Answer explanation

Checking the creditworthiness of the customer ensures they can pay for the goods, reducing the risk of non-payment and thus promoting prompt payment in the sales cycle.

JBB Co manufactures and sells furniture, which it sells online and delivers to customers. JBB has recently faced a number of complaints from customers who have been sent the wrong style or colour of furniture. Which of the following controls would help JBB to avoid this problem?

(i) Agree goods despatched note (GDN) to original order

(ii) Match invoice to GDN

(iii) Match orders sent to invoices raised

(iv) Send confirmation of receivables to customers

• (i) and (ii) only

• (i) and (iii) only

• (ii) and (iv) only

• (i) only

Answer explanation

Control (i) ensures that the goods dispatched match the original order, directly addressing the issue of sending the wrong style or colour of furniture. The other options do not specifically prevent this error.

Grey Ltd has recently discovered that it has been paying invoices in respect of goods which had been returned as faulty before acceptance. It is company policy to record goods only if they have been accepted. Which of the following controls would have prevented this from occurring?

• Matching purchase invoices with goods received records

• Matching purchase invoices with orders

• Comparison of supplier statements with payables ledger accounts

• Date stamping purchase invoices on receipt.

Answer explanation

Matching purchase invoices with goods received records would have ensured that only accepted goods were invoiced, preventing payment for faulty items that were returned before acceptance.

Noah is considering introducing a number of control systems into his business. However, he is uncertain about what this would accomplish. Which of the following is NOT a purpose of organisational control systems?

• Safeguarding of company assets

• Prevention of errors

• Increased profitability

• Increased efficiency

Answer explanation

Increased profitability is not a direct purpose of organisational control systems. These systems primarily aim to safeguard assets, prevent errors, and enhance efficiency, while profitability is an outcome influenced by various factors.

Which of these controls relates to the sales system?

• Matching of cash payments to invoices received

• Calculating overtime payments

• Authorisation of requisition forms

• Matching of cash received to invoices sent

Answer explanation

The correct choice, 'Matching of cash received to invoices sent', directly relates to the sales system as it ensures that payments received correspond to the sales made, confirming revenue accuracy.

Samat runs a business which sells computer equipment. He is concerned that when her business pays its suppliers, the wrong amount may be paid. Which of the following control measures could help Samat to deal with this problem?

• Regular supplier statement reconciliations

• Match the GRN to the original purchase order sent to the supplier

• Matching of the purchase order to the requisition order

• Prompt recording of invoices received

Answer explanation

Regular supplier statement reconciliations help ensure that the amounts paid to suppliers match the records, reducing the risk of overpayment or underpayment. This control measure directly addresses Samat's concern.