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