Purchases: Expenditures Processes and Controls
CONTROLS AND PROCESSES
TURNER / WEICKGENANNT
CHAPTER 9: Expenditures Processes and Controls – Purchases
TEST BANK - CHAPTER 9 - TRUE / FALSE
1. When the company is a vendor, goods flow into the company and cash is paid out.
2. Companies in the same line of business are not likely to have many differences in their purchasing habits.
3. The purchasing process starts when the purchase invoice is submitted by the vendor.
4. A purchase order is essentially an internal document, one that does not go outside the company, whereas a purchase requisition is an external document, which will be presented to an entity outside the company.
5. A purchase requisition is essentially an internal …show more content…
ANSWERS TO TEST BANK – CHAPTER 9 – TRUE / FALSE:
1. F 9. T 17. F 25. F 33. T 2. F 10. T 18. T 26. F 34. F 3. F 11. F 19. T 27. T 35. T 4. F 12. F 20. F 28. F 36. T 5. T 13. T 21. T 29. T 37. F 6. T 14. T 22. F 30. F 7. F 15. F 23. T 31. T 8. T 16. T 24. T 32. F
TEST BANK - CHAPTER 9 - MULTIPLE CHOICE
38. The policies and procedures that employees following in completing the purchase of goods or materials, capturing vendor data and purchase quantities, and routing the resulting purchasing documents to the proper departments within the company are called: A. Systems B. Processes C. Activities D. Requisitions
39. The information from a purchase must flow into the purchase recording systems, the accounts payable and cash disbursement systems, and the inventory tracking systems. In an IT accounting system, these recording and processing systems are called: A. General Ledger Systems B. Integrated Accounting Systems C. Journal Application Systems D. Transaction Processing Systems
40. The acquisition of materials and supplies and the related cash disbursements is referred to as: A. The Procurement Process B. Systems and Control Process C. Expenditure and Return Process D. Conversion Process
41. Which of the following