54. When a copy of the receiving report arrives in the purchasing department, it is used to

a) Analyze the receiving departments process

b) Record the physical transfer of inventory from receiving to the warehouse

c) Adjust perpetual inventory records

d) Recognize the purchase order as closed

55. Usually the open voucher payable file is organized by

a) Vendor

b) Payment due date

c) Purchase order number

d) Transaction date

56. Authorization for payment of an accounts payable liability is the responsibility of

a) Cash disbursements

b) Inventory control

c) Accounts payable

d) Purchasing

57. When a cash disbursement in payment of an accounts payable is recorded

a) The liability account is increased

b) The liability account is decreased

c) The income statement is changed

d) The cash account is unchanged

58. Because of time delays between receiving inventory and making the journal entry

a) Liabilities are not affected

b) Liabilities are usually understated

c) Liabilities are usually correctly stated

d) Liabilities are usually overstated

59. Which of the following statements is not correct?

a) Many firms replace accounts payable with a voucher payable system.

b) The voucher system is used to improve control over cash disbursements.

c) The sum of the paid vouchers represents the voucher payable liability of the firm.

d) The voucher system permits the firm to consolidate payments of several invoices on one voucher.

60. In a merchandising firm, authorization for the payment of inventory is the responsibility of

a) Purchasing

b) Accounts payable

c) Cash disbursements

d) Inventory control

61. Which of the following best describes a profit center?

a) Authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply, and significant control over the amount of invested capital

b) Authority to provide specialized support to other units within the organization

c) Authority to make decisions over the most significant costs of operations, including the power to choose the sources of supply

d) Authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply

62. Which of the following is not an input control to reduce the risks of data entry errors and payroll fraud for a company with a mobile or distributed work force?

a) Biometric scanners, swipe cards, and PINs

b) Check digits that detect transcription errors in employee identification

c) Limit tests that detect excessive hours

d) Multilevel security that achieves segregation of duties

63. Accounts payable

a) Prepares the payroll voucher

b) Distributes paychecks to employees

c) Reconciles time cards and employee records

d) Signs paychecks