Ch11quiz

Student:___________________________________________________________________________

1.Productcostsshouldbematcheddirectlywithspecifictransactionsandarerecognizeduponrecognitionof
revenue.
TrueFalse

2.Apurchasetransactionusuallybeginswiththepreparationofapurchaseorder.
TrueFalse

3.Areceivingreportisusedtodocumenttheorderingofgoods.
TrueFalse

4.Thepurchasejournalisreferredtoasacheckregister.
TrueFalse

5.Theprincipalbusinessobjectivesofthepurchasingprocessareacquiringgoodsandservicesandpayingfor
thosegoodsandservices.
TrueFalse

6.Theaccountspayabledepartmentisresponsibleforensuringthatallvendorinvoices,cashdisbursements,
andadjustmentsarerecordedintheaccountspayablerecords.
TrueFalse

7.Afterthecontrolsaretested,theauditorsetstheachievedlevelofcontrolrisk.
TrueFalse

8.Becauseofthelowvolumeofpurchasereturntransactions,theauditornormallydoesnottestthecontrols
associatedwiththesetransactions.
TrueFalse

9.Analyticalprocedurescanbeusedtoexaminethereasonablenessofaccountspayableandaccruedexpenses.
TrueFalse

10.Accountspayableconfirmationsareusedlessfrequentlybyauditorsthanaccountsreceivable
confirmations.
TrueFalse