Question 1

1 / 1 pts

Statement I: The blind copy of the purchase order that goes to the receiving department contains no
item descriptions.

Statement II: Proper segregation of duties requires that the responsibility of approving a payment be
separated from posting to the cash disbursements journal.

  

Both statements are false

  

Both statements are correct

  

Only Statement II is correct

  

Only Statement I is correct

Question 2

1 / 1 pts

Statement I: If accounts payable receives an invoice directly from the supplier it needs to be reconciled
with the purchase order and receiving report.

Statement II. The AR clerk authorizes the write-off of bad debts. This indicates a weak internal control
structure.

  

Both statements are correct

 
   

Only Statement II is correct

  

Only Statement I is correct

  

Both statements are false

Question 3

1 / 1 pts

In a properly designed internal accounting control system the same employee may be permitted to do
the following except:

  

initiate a request to order merchandise and approve merchandise received

  

receive merchandise and prepare a receiving report

  

sign checks and cancel supporting documentation

  

prepare disbursement vouchers and sign checks

 
Question 4

1 / 1 pts

Which of the following is the most effective control procedure to detect vouchers that were prepared
for the payment of goods that were not received?

  

Match purchase order, receiving report, and vendor's invoice for each voucher in the accounts payable
department

  

Verify vouchers for accuracy and approval in the internal audit department

  

Count goods on receipt in the storeroom

  

Compare goods received with good requisitioned in the receiving department

Question 5

1 / 1 pts

Which statement is NOT correct for an expenditure system with proper internal control?

  

Accounts payable is responsible for paying invoices

  

Accounts payables maintains the accounts payable subsidiary ledger

 
   

Accounts payable is responsible for authorizing invoices

  

Cash disbursement maintain the check register

Question 6

1 / 1 pts

When will a credit check approval most likely require specific authorization by the credit department?

  

when verifying that the current transaction does not exceed the customer’s credit limit

  

when a valid customer place a materially large order

  

when verifying that the current transaction is with a valid customer

  

when a valid customer returns goods

Question 7

1 / 1 pts

Which type of control is considered to be a compensating control?

   

accounting records

  

segregation of duties

  

access control

  

supervision

Question 8

1 / 1 pts

Which of the following is not an output control?

  

The billing department reconciles the shipping notice with the sales invoice to ensure that customers are
billed only for the quantities shipped.

  

The shipping department verifies that the goods sent from the warehouse are correct in type and
quantity.

  

General ledger clerks reconcile journal vouchers that were independently

 
   

The salesclerk uses pre-numbered sales orders.

Question 9

1 / 1 pts

Which function or department below records the decrease in inventory due to a sale?

  

sales department

  

warehouse

  

inventory control

  

billing department

Question 10

1 / 1 pts

The bill of lading is prepared by the

  

shipping clerk.

 
   

salesclerk

  

billing clerk

  

warehouse clerk.