Hi.

TRUE OR FALSE. State your explanation.

1.In non-manufacturing firms, purchasing decisions are authorized by inventory control.

2.The blind copy of the purchase order that goes to the receiving department contains no item descriptions.

3.Firms that wish to improve control over cash disbursements use a voucher system.

4.In a voucher system, the sum of all unpaid vouchers in the voucher register equals the firm's total voucher payable balance.

5.The accounts payable department reconciles the accounts payable subsidiary ledger to the control account.

6.The use of inventory reorder points suggests the need to obtain specific authorization.

7.Proper segregation of duties requires that the responsibility approving a payment be separated from posting to the cash disbursements journal.

8.A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.

9.When a trading partner agreement is in place, the traditional three way match may be eliminated.

10.Authorization of purchases in a merchandising firm occurs in the inventory control department.

11.A three way match involves a purchase order, a purchase requisition, and an invoice.

12.Authorization for a cash disbursement occurs in the cash disbursement department upon receipt of the supplier's invoice.

13.Permitting warehouse staff to maintain the only inventory records violates separation of duties.

14.A purchasing system that employs electronic data interchange does not use a purchase order.

15.Inventory control should be located in the warehouse.

16.Inspection of shipments in the receiving department would be improved if the documentation showed the value of the inventory.

-it