24 Questions
What is the main purpose of the cash disbursement function in the expenditure cycle?
To prepare the cash for payment of invoices
What is the primary objective of the revenue cycle?
To verify that the customers are worthy of credit
Which of the following is not a function of the revenue cycle?
Prepare the cash disbursement
What is the purpose of the accounts payable function in the expenditure cycle?
To maintain the accounts payable ledger
What is the purpose of the general ledger posting function in the expenditure cycle?
To post transactions from the expenditure cycle to the general ledger
Which of the following is not an objective of the revenue cycle?
To prepare the cash disbursement
What is one of the objectives of the Conversion Cycle related to work-in-progress inventories?
To transform work-in-progress inventories into finished goods on schedule
Which function is NOT part of the Conversion Cycle?
Preparing financial reports and other outputs
What is an objective of the General Ledger System?
Ensuring established levels of product quality are attained
Which activity is NOT related to the functions of the Conversion Cycle?
Processing back orders
What is an objective of handling sales returns and allowance in the accounting system?
Collecting delinquent accounts
Which of the following is NOT an objective related to the Conversion Cycle?
Completing and transferring finished goods
What is the primary objective of the general ledger system?
To maintain an equality of debit and credit balances among the accounts
Which of the following is not a function of the general ledger system?
Prepare budgets
What type of account is considered an 'equity account' in the chart of accounts?
Liabilities
Which of the following types of transactions is not posted to the general ledger?
Budgeting entries
What is the purpose of recording 'reversing entries' in the general ledger?
To close out temporary accounts at the end of the period
What is the main purpose of the 'chart of accounts' in the general ledger system?
To provide a coded listing of all the accounts
What is the primary objective of the expenditure cycle?
To ensure all goods and services are ordered as needed
Which of the following is NOT a function of the expenditure cycle?
Generate invoices for payment
What is the purpose of posting obligations and cash disbursements to suppliers' accounts?
To track the organization's payables
Which of the following is NOT an objective of the expenditure cycle?
To ensure all cash receipts are related to authorized expenditure
What is the purpose of ascertaining the validity of the payment obligation?
To ensure that invoices are accurate and legitimate
Which of the following is a type of transaction or data source mentioned in the text?
Routine internal transactions
This quiz covers the objectives and functions of transaction processing cycles in accounting, specifically focusing on routine and non-routine transactions, types of data sources, and the four main accounting transaction cycles. Test your knowledge on this important aspect of accounting systems.
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