ACQUISITION AND PAYMENT CYCLE (DISBURSEMENT ACCOUNTING SYSTEM)

QUESTIONS:
11. This is the record kept by accountants to record all financial expenditures made by a company

a. Cash Disbursement Journal

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?

a. Material requirements planning (MRP)

b. Economic order quantity (EOQ)

c. Just-in-time (JIT)

d. Reorder point

13. The threat of inaccurate inventory records can be mitigated by which of the following
controls?

a. Bar coding or RFID tags

b. Review of purchase orders

c. Verification of invoice accuracy

d. Supplier audits

e. None of the above

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

b. Receipt and storage of goods

c. The payment of approved invoices

d. Approving vendor invoices or payments

16. What is the final activity in the disbursement cycle?

a. Ordering Goods

b. Receipt and storage of goods

c. The payment of approved invoices

d. Approving vendor invoices or payment

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.

a. Purchase/Accounts Payable System

b. Sales/Accounts Receivable System

c. Payroll System

d. Cash Disbursement System

19. Which of the following expenditure cycle task should not be separated?

a. Purchasing inventory items and updating inventory subsidiary ledger

b. Receiving inventory items and updating inventory subsidiary ledger

 c. Storing inventory in the warehouse and updating inventory subsidiary ledger

d. Updating accounts payable records and posting to the cash disbursement journal

e. All the above should be separated

20. The risk of receiving unordered goods is prevented most effectively by:

a. surprise audits

b. recalculation of invoice prices

c. Instruct the receiving department to accept deliveries only those goods where there is an
approved copy of the purchase order.

d. All of the above