TRUE OR FALSE

1. When granting credit, a credit term must be given to a customer always setting a credit limit is not a requirement.
2. The use of CCTVs is access control for both cash and inventories.
3. The purchasing department can initiate the purchase of goods or services on behalf of other departments or functions.
4. The billing department is traditionally part of the accounting function of the company.
5. In Hall's cash receipts procedures, the reconciliation performed is a three-way match.
6. Warehouse personnel uses a copy of the receiving report and the physical goods to update the warehouse stock records.
7. A vouchers payable file is equivalent to an Accounts Payable file.
8. The acknowledged Purchase order serves as a binding contract of a business with its supplier
9. The Philippine postal system suffers from a lack of reliance in terms of handling mails with enclosed monetary objects
10. Maintaining physical files of source documents is critical to all revenue systems regardless of technology dependence.
11. Aside from the suggested three documents, a purchase requisition can be added in the review of documents before liability is recorded
12. The shipping department personnel performs a very important independent review and checking by comparing goods received from the warehouse with an approved sales orders.
13. A purchase requisition reflects the authorization for the purchase of goods or service and the recognition of the corresponding liability
14. Remittance advice is always required to accompany payments made by customers.
15. Accounts payable personnel has a responsibility to match the information in two (2) documents, namely, the purchase order with the supplier's invoice, to set up the liability in the accounting records.
16. Electronic Data Interchange is a system that is prevalent in both B2B and B2C transactions.
17. The updating of General Ledger usually is the last process in a transaction processing cycle.
18. Use scanner technology and automated ordering as some of the recommended IT controls to prevent the shipping of incorrect items or quantities to customers
19. DLSUD pays most of its suppliers through checks
20. Though not discussed by Hall, the processes for a purchase return can be a third subsystem in the Expenditure Purchasing cycle
21. The reckoning of a sales transaction is usually based on the possession of the goods by the customer
22. Identifying the preferred vendor in the purchase requisition is a requirement for all purchases
23. The adoption of an EDI system for basic raw materials is a control measure to minimize the risk of unauthorized inventory purchases.
24. Printing of hard copy documents in a fully integrated system is still practiced but is deemed inefficient
25. The sales department usually is responsible for forwarding the packaging slip and shipping notice to the shipping function as per Hall.