ch8 - ch8 Student: _ 1. When confirming accounts payable,...

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ch8 Student: ___________________________________________________________________________ 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. 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. 3. "All purchase orders are supported by requisitions from proper persons" is a specific example of which management assertion? A. Occurrence. B. Completeness. C. Cutoff. D. Classification. 4. Cash disbursements are authorized by A. Purchase orders. B. Invoices. C. Receiving reports. D. A complete voucher package. 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. 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.
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7. A voucher package 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. 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. 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. 10. Which of the following would detect the understatement of a purchase discount? A. Verify the arithmetic accuracy of the purchases journal. B. Compare purchase disbursement records and checks with invoice terms.
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This note was uploaded on 10/04/2011 for the course SOM 6401 taught by Professor Chrits during the Spring '11 term at University of Texas at Austin.

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ch8 - ch8 Student: _ 1. When confirming accounts payable,...

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