1. A voucher package should include

		a purchase order, vendor invoice, and receiving report.
		a purchase requisition, purchase order, and receiving report.
		a purchase requisition, vendor invoice, and receiving report.
		a bill of lading and vendor invoice.

2. An important control that can be used to reduce the risk of employee kickbacks is

		off-site restrooms.
		surveillance cameras.
		job rotation.
		use of ID badges.

3. Anong Mali is the purchasing manager at Wattana Technologies. She has responsibility for reviewing and authorizing purchase orders. She also reviews receiving reports, approves or corrects them, and authorizes the cashier to pay vendor invoices. Which of the following would correct control weaknesses related to these activities?

		Vendor invoices should be reviewed by accounts receivable and then cancelled when paid.
		Vendor invoices should be reviewed by the purchasing manager to ensure that they are correct.
		Accounts payable should reconcile purchase orders, receiving reports, and invoices.
		Controls are adequate under the current system.

4. Comparing quantities on a vendor invoice to quantities on the receiving report would not prevent or detect which of the following situations?

		update of wrong inventory items due to data entry error
		theft of inventory by receiving department employees
		order for an excessive quantity of inventory
		receiving and accepting inventory not ordered

5. Economic Order Quantity (EOQ) includes several variables that must be taken into consideration when calculating the optimal order size. One variable, the costs associated with holding inventory, is referred to as

		carrying costs.
		stockout costs.
		the reorder point.
		ordering costs.

6. Ideally, inventory purchases occur in response to ________ in a JIT inventory system.

		optimal demand
		supplier demand
		forecast demand
		customer demand

7. If available, a 1% discount for payment within 10 days instead of 30 days represents an approximate savings of ________% annually.

		1
		12
		36
		18

8. If duties are properly segregated, the authorization function is performed by ________, the recording function is performed by ________, and cash handling is performed by the ________.

		purchasing; accounts payable; cashier
		purchasing; accounts payable; treasurer
		accounts payable; purchasing; cashier
		purchasing; cashier; accounts payable