Multiple-Choice
1. Which document helps to ensure that the receiving clerks actually count the number of goods received?
a. Packing list
b. Blind copy of purchase order
c. Shipping notice
d. Invoice

2. When the goods are received and the receiving report has been prepared, which ledger may be updated?
a. Standard cost inventory ledger
b. Inventory subsidiary ledger
c. General ledger
d. Accounts payable subsidiary ledger

3. Which statement is NOT correct for an expenditure system with proper internal controls?
a. Cash disbursements maintain the check register.
b. Accounts payable maintains the accounts payable subsidiary ledger.
c. Accounts payable is responsible for paying invoices.
d. Accounts payable is responsible for authorizing invoices.

4. Which duties should be segregated?
a. Matching purchase requisitions, receiving reports, and invoices and authorizing payment.
b. Authorizing payment and maintaining the check register.
c. Writing checks and maintaining the check register.
d. Authorizing payment and maintaining the accounts payable subsidiary ledger.

5. Which documents would an auditor most likely choose to examine closely to ascertain that all expenditures incurred during the accounting period have been recorded as a liability?
a. Invoices
b. Purchase orders
c. Purchase requisitions
d. Receiving reports

6. Which task must still require human intervention in an automated purchases/cash disbursements system?
a. Determination of inventory requirements.
b. Preparation of a purchase order.
c. Preparation of a receiving report.
d. Preparation of a check registers.

7. Which one of the following departments does not have a copy of the purchase order?
a. The purchasing department
b. The receiving department
c. Accounts payable
d. General ledger

8. Which document typically triggers the process of recording a liability?
a. Purchase requisition
b. Purchase order
c. Receiving report
d. Supplier’s invoice

9. Which of the following tasks should the cash disbursement clerk NOT perform?
a. Review the supporting documents for completeness and accuracy
b. Prepare checks
c. Supplier’s invoice
d. Mark the supporting documents paid

10. Which of the following is true?
a. The cash disbursement function is part of accounts payable.
b. Cash disbursements is an independent accounting function.
c. Cash disbursements is a treasury function.
d. The cash disbursement function is part of the general ledger department.