Purchases and Cash Disbursement Procedures Quiz

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Which of the following is NOT an objective of the expenditure cycle?

To maintain records for decision making

To provide needed resources to the organization

To purchase from reliable vendors

To promote the flow of transactions through the organization (correct)

Which functional area is responsible for the inspection of received goods?

Cash Disbursements

Accounts Payable

Purchasing

Receiving/Inspection (correct)

Which of the following documents provides an audit trail and supports financial reporting?

Purchase Requisition

Cash Disbursements

Accounts Payable (correct)

Journals

What are the risks associated with purchase and cash disbursement activities?

Inaccurate financial reporting Signup and view all the answers

What is the goal of the expenditure cycle?

To provide needed resources to the organization Signup and view all the answers

Which of the following is NOT a task performed during the purchases and cash disbursement processes?

Sales and Marketing Signup and view all the answers

Which functional area is responsible for the flow of purchase and cash disbursement transactions through the organization?

Purchasing Signup and view all the answers

Which of the following provides an audit trail, promotes record maintenance, and supports decision making and financial reporting?

Accounts Payable Signup and view all the answers

What are the risks associated with purchase and cash disbursements activities?

Operational risks Signup and view all the answers

What are the control implications of technology used in purchases and cash disbursement systems?

Increased efficiency Signup and view all the answers

Purchases and Cash Disbursement Procedures Quiz

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Questions and Answers

Which of the following is NOT an objective of the expenditure cycle?

Which functional area is responsible for the inspection of received goods?

Which of the following documents provides an audit trail and supports financial reporting?

What are the risks associated with purchase and cash disbursement activities?

What is the goal of the expenditure cycle?

Which of the following is NOT a task performed during the purchases and cash disbursement processes?

Which functional area is responsible for the flow of purchase and cash disbursement transactions through the organization?

Which of the following provides an audit trail, promotes record maintenance, and supports decision making and financial reporting?

What are the risks associated with purchase and cash disbursements activities?

What are the control implications of technology used in purchases and cash disbursement systems?

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