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A ______ specifies the sequence of operations and the standard time allocated to each task.
A ______ specifies the sequence of operations and the standard time allocated to each task.
ROUTE SHEET
A ______ authorizes the storekeeper to release materials to individuals or work centers in the production process.
A ______ authorizes the storekeeper to release materials to individuals or work centers in the production process.
MATERIALS REQUISITION
The time between placing an order for inventory and its arrival is called ______.
The time between placing an order for inventory and its arrival is called ______.
LEAD TIME
A customer order that cannot be filled because of a stock-out is called a ______.
A customer order that cannot be filled because of a stock-out is called a ______.
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A record of the path that a transaction takes through the input, processing, and output phases is called an ______.
A record of the path that a transaction takes through the input, processing, and output phases is called an ______.
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The first step of the purchase processing system is ______ inventory level.
The first step of the purchase processing system is ______ inventory level.
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The source of input to the general ledger is the ______.
The source of input to the general ledger is the ______.
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The payroll function has both asset custody (employee paychecks) and ______ responsibility (employee payroll records).
The payroll function has both asset custody (employee paychecks) and ______ responsibility (employee payroll records).
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The supplier’s invoice provides the financial information needed to record the obligation as an ______.
The supplier’s invoice provides the financial information needed to record the obligation as an ______.
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Cost accounting activities of the conversion cycle record the financial effects of the physical events that are occurring in the ______ process.
Cost accounting activities of the conversion cycle record the financial effects of the physical events that are occurring in the ______ process.
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Make-to-order processing is initiated by ______ orders rather than depleted inventory levels.
Make-to-order processing is initiated by ______ orders rather than depleted inventory levels.
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Depreciation allocates the cost of an asset over its ______ life.
Depreciation allocates the cost of an asset over its ______ life.
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The principal objective of the ______ system is to ensure that only valid creditors receive payment and that amounts paid are timely and correct.
The principal objective of the ______ system is to ensure that only valid creditors receive payment and that amounts paid are timely and correct.
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The ______ shows when to stop taking depreciation on fully depreciated assets.
The ______ shows when to stop taking depreciation on fully depreciated assets.
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The ______ captures the time that individual workers spend on each production job.
The ______ captures the time that individual workers spend on each production job.
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The ______ contains quantity information that could be used to circumvent the inspection process that often accompanies incoming goods.
The ______ contains quantity information that could be used to circumvent the inspection process that often accompanies incoming goods.
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The ______ involves adjusting the fixed asset subsidiary account balances as the assets (excluding land) depreciate over time or with usage.
The ______ involves adjusting the fixed asset subsidiary account balances as the assets (excluding land) depreciate over time or with usage.
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The ______ is a special-case purchases system in which the organization purchases labor rather than raw materials or finished goods for resale.
The ______ is a special-case purchases system in which the organization purchases labor rather than raw materials or finished goods for resale.
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The internal auditor should review the ______ and approval procedures to determine the reasonableness of factors used in the analysis.
The internal auditor should review the ______ and approval procedures to determine the reasonableness of factors used in the analysis.
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The automatic ______ charges calculated by the fixed asset system should be reviewed and verified for accuracy and completeness.
The automatic ______ charges calculated by the fixed asset system should be reviewed and verified for accuracy and completeness.
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The general ledger department provides verification of the overall process by reconciling the ______ distribution summary and the payroll disbursement voucher.
The general ledger department provides verification of the overall process by reconciling the ______ distribution summary and the payroll disbursement voucher.
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The supervisors in the work centers oversee the usage of RM in the ______ process.
The supervisors in the work centers oversee the usage of RM in the ______ process.
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To obtain excess quantities requires ______ authorization and formal documentation.
To obtain excess quantities requires ______ authorization and formal documentation.
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The supervisor must verify the accuracy of the ______ and sign them before sending to payroll.
The supervisor must verify the accuracy of the ______ and sign them before sending to payroll.
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The use of an independent ______ to distribute checks helps verify the existence of the employees.
The use of an independent ______ to distribute checks helps verify the existence of the employees.
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The AP clerk verifies the accuracy of the ______ register before creating a disbursement voucher.
The AP clerk verifies the accuracy of the ______ register before creating a disbursement voucher.
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The primary physical asset is ______.
The primary physical asset is ______.
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The ______ control function continually monitors inventory levels.
The ______ control function continually monitors inventory levels.
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A check register containing the voucher number authorizing each check provides an audit trail for verifying the authenticity of each check ______.
A check register containing the voucher number authorizing each check provides an audit trail for verifying the authenticity of each check ______.
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Study Notes
Manufacturing and Production
- Route sheet specifies the sequence of operations and standard time allocated to each task.
- Materials requisition authorizes the storekeeper to release materials to the work centers.
- Lead time refers to the time between placing an order for inventory and its arrival.
Inventory Management
- Back-order refers to a customer order that cannot be filled due to a stock-out.
- Monitoring inventory levels is the first step of the purchase processing system.
Financial Management
- Journal voucher represents summaries of similar transactions or a single unique transaction.
- Management reporting is often called discretionary reporting and is not mandated.
- Depreciation allocates the cost of an asset over its useful life.
Payroll Processing
- Payroll activities are discrete events in which disbursements to employees occur weekly, biweekly, or monthly.
- Payroll processing is a special-case purchases system in which the organization purchases labor.
Control and Audit
- Audit trail facilitates error prevention and correction when data files are conveniently and logically organized.
- Operational control ensures that the firm operates in accordance with pre-established criteria.
- Standards are pre-established levels of performance that managers believe are attainable.
Purchasing and Receiving
- Blind purchase order has all the relevant information about the goods being received except for quantities and prices.
- Receiving report is an evidence of the physical receipt of goods, their condition, and quantities received.
- Three-way match verifies that what was ordered was received and is fairly priced.
Asset Management
- Asset maintenance involves adjusting the fixed asset subsidiary account balances as assets depreciate over time or with usage.
- Depreciation schedule shows when to stop taking depreciation on fully depreciated assets.
Time and Job Management
- Job tickets capture the time individual workers spend on each production job.
- Time cards capture the time the employee is at work and are used to calculate payroll.
Production and Scheduling
- Production schedule describes the specific products to be made, quantities to be produced, and manufacturing timetable.
- Move tickets are used to track products through various work centers.
Internal Control
- The internal auditor should review the acquisition and approval procedures to determine the reasonableness of factors used in the analysis.
- The general ledger department provides verification of the overall process by reconciling the labor distribution summary and the payroll disbursement voucher.
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Description
This quiz reviews the concepts of receiving report, blind copy of purchase order, three-way match, and cash disbursement in the context of accounting information systems.
