1.

A supplier invoice
a. is included with the goods
b. shows what was ordered even if allasdasdasdasdasdasd was not shipped
c. is sent by vendor to accounts payable
d. none of the abovea
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ANS: C

2. The cash disbursement function is

a. part of accounts payable
b. an independent accounting functionasdasdasdasdasdasdas
c. a treasury function
d. part of the general ledger department

ANS: C

3. Goods received are inspected and counted to

a. determine that the goods are in good condition
b. determine the quantity of goods received
c. preclude payment for goods not received or received in poor condition
d. all of the above

ANS: D

4. In regards to the accounts payable department, which statement is not true?

a. the purchase requisition shows that the transaction was authorized
b. the purchase order proves that the purchase was required
c. the receiving report provides evidence of the physical receipt of the goods
d. the supplier’s invoice indicates the financial value of the transaction

ANS: B

5. In a firm with proper segregation of duties, adequate supervision is most critical in

a. purchasing
b. receiving
c. accounts payable
d. general ledger

ANS: B

6. Of the following duties, it is most important to separate

a. warehouse from stores
b. warehouse from inventory control
c. accounts payable and accounts receivable
d. purchasing and accounts receivable
 ANS: B

7. Authorization for payment of an accounts payable liability is the responsibility of

a. inventory control
b. purchasing
c. accounts payable
d. cash disbursements

ANS: C

8. When a cash disbursement in payment of an accounts payable is recorded

a. the liability account is increased
b. the income statement is changed
c. the cash account is unchanged
d. the liability account is decreased

ANS: D

9. The cash disbursement clerk performs all of the following tasks except
a. reviews the supporting documents for completeness and accuracy
b. prepares checks
c. signs checks
d. marks the supporting documents paid

ANS: C

10. To maintain a good credit rating and to optimize cash management, cash disbursements should
arrive at the vendor’s place of business
a. as soon as possible
b. on the due date
c. on the discount date
d. by the end of the month

ANS: C