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QUESTIONS:
11. This is the record kept by accountants to record all financial expenditures made by a company
b. General Journal
c. Ledger
d. Trial Balance
12. Which inventory system attempts to minimize inventory costs by only purchasing goods
required for actual sales orders?
c. Just-in-time (JIT)
d. Reorder point
13. The threat of inaccurate inventory records can be mitigated by which of the following
controls?
d. Supplier audits
14. This individual confirms the proprietary of the payment as well as the payee information.
a. System administrator
b. Initiator
c. Approver/Releaser
d. Controller
15. What is the first activity in the disbursement cycle?
a. Ordering Goods
a. Ordering Goods
17. What is the process by which a business buys items, from parts for a manufacturing process
to goods for commercial sale, with cash resources?
a. Cash Receipt
b. Cash Disbursement
c. Cash Savings
d. Cash Card
18. This system collects labor usage data for each employee, computes the payroll, and disburses
paychecks to the employees.
c. Payroll System
19. Which of the following expenditure cycle task should not be separated?
d. Updating accounts payable records and posting to the cash disbursement journal
20. The risk of receiving unordered goods is prevented most effectively by:
a. surprise audits
c. Instruct the receiving department to accept deliveries only those goods where there is an
approved copy of the purchase order.