Hi.

TRUE OR FALSE. State your explanation.

17. One reason for authorizing purchases is to enable efficient inventory management.

18.If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

19.Supervision in receiving is intended to reduce the theft of assets.

20.The inventory procurement process begins with the purchasing clerk preparing a purchase order.

21.The receiving report is prepared by the vendor to provide evidence that the purchase order was received.

22.When goods are received, the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.

23.Time cards are used by cost accounting to allocate direct labor charges to work in process.

24.The personnel department authorizes changes in employee pay rates.

25.Most payroll systems for mid-size firms use real-time data processing.

26.Because a time clock is used, no supervision is required when employees enter and leave the work place.

27.Work-in-process records are updated by payroll personnel.

28.Ideally, payroll checks are written on a special bank account used only for payroll.

29.The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

30.Payroll processing can be automated easily because accounting for payroll is very simple.

31.Timekeeping is part of the personnel function.

32.The payroll department is responsible for both updating the employee records and writing paychecks.

-it