10 Questions
Which of the following is NOT an objective of the expenditure cycle?
To promote the flow of transactions through the organization
Which functional area is responsible for the inspection of received goods?
Receiving/Inspection
Which of the following documents provides an audit trail and supports financial reporting?
Accounts Payable
What are the risks associated with purchase and cash disbursement activities?
Inaccurate financial reporting
What is the goal of the expenditure cycle?
To provide needed resources to the organization
Which of the following is NOT a task performed during the purchases and cash disbursement processes?
Sales and Marketing
Which functional area is responsible for the flow of purchase and cash disbursement transactions through the organization?
Purchasing
Which of the following provides an audit trail, promotes record maintenance, and supports decision making and financial reporting?
Accounts Payable
What are the risks associated with purchase and cash disbursements activities?
Operational risks
What are the control implications of technology used in purchases and cash disbursement systems?
Increased efficiency
Test your knowledge on purchases and cash disbursement procedures in the expenditure cycle. This quiz covers the fundamental tasks, functional areas, and important documents involved in managing purchases and cash disbursements within an organization. Challenge yourself and assess your understanding of audit trails and transaction flows.
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