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Unformatted text preview: Chapter 9, the Acquisition/Payment Business Process True/False Questions 1. The acquisition/payment transaction cycle may also be called the expenditures cycle. Ans: True 2. The acquisition/payment process includes the activities associated with buying maintaining and paying for goods and services needed by enterprises. Ans: True 3. Many activities in the acquisition/payment process are the same activities as in the sales/collection process, only viewed from the buyer's perspective instead of from the seller's view. Ans: True 4. Because the acquisition/payment process involves no resource exchanges with external business partners, it falls entirely within the enterprise circle of the value system level diagram. Ans: False Response: The acquisition/payment process involves the flow of goods and services from vendors to the enterprise and also the flow of cash from the enterprise to vendors. 5. In a value chain model, cash is typically made available to the acquisition/payment process by the financing process. Ans: True 6. Most enterprises explicitly track labor operations of purchasing agents and thereby match the use of their labor to the corresponding acquisition event that increases goods in the acquisition/payment process. Ans: False Response: Typically the only economic decrement event included in the acquisition/payment process is the cash disbursement. Tracking of labor operations is not usually considered cost beneficial. 7. In the acquisition/payment process, purchase requisitions are instigation events. Ans: True 154 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e Chapter 9, the Acquisition/Payment Business Process 8. In the acquisition/payment business process, a mutual commitment event does not always happen at a discrete point in time; often it involves a series of activities. Ans: True 9. In the acquisition/payment process, information captured on a purchase order document is usually identical (i.e., each contains exactly the same information, no more, no less) to the information captured in the purchase order table in a REA based relational database. Ans: False Response: While the purchase order document usually includes all the information captured in a purchase order table, the document also includes information that is usually stored in resource, agent, and relationship tables. 10. In the acquisition/payment process, a rental contract is an economic decrement event. Ans: False Response: A rental contract in the acquisition/payment process is a commitment to increase a resource. 11. In the acquisition/payment process, a rental acquisition begins when the right to temporary possession of the rented goods transfers from the supplier to the enterprise and ends when possession of the goods transfers back from the enterprise to the supplier....
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This note was uploaded on 01/17/2011 for the course INFO SYSTE ACC 115 taught by Professor Baker during the Spring '10 term at Strayer.
- Spring '10