Chap008 - Chapter 08 - Acquisition and Expenditure Cycle...

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Chapter 08 - Acquisition and Expenditure Cycle Chapter 08 Acquisition and Expenditure Cycle Multiple Choice Questions 1. When confirming accounts payable, emphasis should be put on what kind of accounts? A. Accounts with small or zero balances B. All accounts should be equally emphasized C. Accounts with large balances D. Accounts listed in the accounts payable subsidiary Difficulty: Medium Source: Original 2. "Recorded vouchers (accounts payable entries) in the voucher register (e.g., purchases journal) supported by completed voucher documentation" is a specific example of which management assertion? A. Classification B. Occurrence C. Completeness D. Cutoff Difficulty: Medium Source: Original 3. "All purchase orders are supported by requisitions from proper persons" is a specific example of which transaction assertion? A. Occurrence B. Completeness C. Cutoff D. Classification Difficulty: Medium Source: Original 8-1
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Chapter 08 - Acquisition and Expenditure Cycle 4. Cash disbursements are authorized by A. Purchase orders B. Invoices C. Receiving reports D. Vouchers Difficulty: Medium Source: Original 5. For the copy of the purchase order that goes to the receiving department, it is best to A. Leave off the description of the goods ordered B. Leave off the quantity of the goods ordered C. Leave off the name of the vendor D. Have the receiving department forward all copies of the purchase order to accounts payable Difficulty: Hard Source: Original 6. Vouchers should be stamped PAID to A. Prevent duplicate payment B. Generate a new purchase order C. Indicate posting in the voucher register D. Facilitate preparation of the bank reconciliation Difficulty: Medium Source: Original 7. A voucher is used to A. Document receipt of inventory B. Document completion of services C. Document a purchase contract D. Provide a source document for recording the purchase of a good or service Difficulty: Medium Source: Original 8-2
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Chapter 08 - Acquisition and Expenditure Cycle 8. An auditor traced a sample of purchase orders and the related receiving reports to the purchases journal. The purpose of this substantive audit procedure most likely was to A. Identify usually large purchases that should be investigated further B. Verify that cash disbursements were for goods actually received C. Determine that purchases were properly recorded D. Test whether payments were for goods actually ordered Difficulty: Easy Source: AICPA 9. The usual source for journal entries posted to the general ledger to record the purchase of inventory is A. Sales invoices updated with cost data from the inventory records department B. Purchase invoices updated with cost data from the inventory records department C. Receiving reports updated with cost data from the accounts payable department D. Vouchers payable journal from the accounts payable department Difficulty: Easy Source: Original 10. Which of the following would detect the understatement of a purchase discount? A.
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This note was uploaded on 05/26/2011 for the course ACCT 403 taught by Professor Mark during the Spring '10 term at Strayer.

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Chap008 - Chapter 08 - Acquisition and Expenditure Cycle...

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