Purchases: Expenditures Processes and Controls

10144 words 41 pages
1ACCOUNTING INFORMATION SYSTEMS
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
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37. Strong corporate governance will prevent fraud, theft, and mismanagement within the expenditure process.

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

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