Multiple choice questions.
1. PLP Corporation maintains an electronic database file for all its vendors and purchases.
Which of the following amounts would you be least likely to find in the “vendor” table?
a. Total amount owed
b. Vendor name
c. Part numbers commonly purchased
d. All of the above would be included in the vendor table.
2. An accounting clerk debited inventory and credited accounts payable for $500. Which of the following is the most likely source document for that transaction?
a. Purchase order
b. Receiving report
c. Vendor invoice
d. Purchase requisition
3. In the context of an acquisition/payment process, the three-way match concept applies to which of the following sets of documents?
a. Purchase requisition, vendor invoice, and remittance advice
b. Vendor invoice, receiving report, and purchase requisition
c. Receiving report, purchase order, and vendor invoice
d. Remittance advice, purchase order, and receiving report
4. The difference between a purchase requisition and a purchase order is
a. Purchase orders are paper, while requisitions are electronic.
b. Purchase requisitions are electronic, while purchase orders are paper.
c. Purchase requisitions are purely internal documents; purchase orders leave the company.
d. Purchase requisitions often have different prices than purchase orders.
5. Which of the following is the best example of a conflict of interest?
a. RKH Corporation established a list of preferred vendors.
b. RKH’s conflict-of-interest policy was developed by their auditors.
c. RKH purchases 80 percent of its inventory from a firm where its purchasing agent is a stockholder.
d. All of the above constitute conflicts of interest.