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31.Because the evaluated receipts settlement process relies heavily on an IT system that can quickly access online purchase-order files, a system slowdown could halt all receiving activity. 32.E-business and EDI have much different advantages and risks to the vendor than what exists for the customer. 33.Redundancy is needed for servers, data, and.
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121. Why would some checks need to include two signatures?  122. During the process of reconciling the bank account, why is it necessary to review the dates, payees, and signatures on the canceled checks? 123. What specifically does a cash disbursements clerk do when he or she “cancels” an invoice?  How does.
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59.Personnel records will typically include all of the following, except: A.Documentation related to the initial hiring B.Personal information, such as the employee address C.Medical history subsequent to hiring D.Social security number 60.Each of the following items would likely be found in an employee’s personnel records related to the initial hiring, except: A.Employment application B.Recommendation letters C.Background investigation results D.Overtime.
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48.There are different ways to issue a purchase order to a vendor.  Which of the following is not one of the ways? A.Hard copy via fax or mail B.Hard copy by hand C.Electronically via e-mail D.Directly through the computer network 49.When purchased goods are received, which of the following tasks should be completed in the.
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11.The accounting department is responsible for implementing internal controls over each business process. 12.Independent reconciliation of the accounts payable subsidiary ledger to the general ledger control account will help to assure that all inventories has been properly recorded. 13.Independent reconciliation of the periodic inventory counts and the inventory ledger and the general.
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68.Internal controls related to the purchase returns would include all of the following, except: A.The accounts payable employee who prepares the debit memo should also be responsible for handling the inventory and approving the return. B.Special authorization should be required to officially reject and return the items. C.Debit memos should be issued on.
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139. Why is batch processing well-suited to payroll processes?  140. What are the advantages of automated time keeping such as bar code readers or ID badges that are swiped through a reader?  141. What are the advantages of outsourcing payroll?  142. Fixed assets are purchased and retired frequently.  Given this frequent.
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21.Cash should be periodically verified by comparing the cash balance with the bank statement. 22.Only the purchasing department should authorize the processing of a cash disbursement transaction. 23.The authorization of a cash disbursement occurs when the accounts payable department matches the purchase order, receiving report, and the invoice, and then forwards the.
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89.A detailed listing of the company’s fixed assets, divided into categories consistent with the general ledger accounts is called a: A.Fixed Asset Journal B.Fixed Asset Subsidiary Ledger C.Fixed Asset Schedule D.Fixed Asset Budget 90.This phase of the fixed asset processes relates to those required to maintain accurate and up-to-date records regarding all fixed assets throughout.
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121.The purpose of segregating the duties of hiring personnel and distributing payroll checks is to separate the: A.Authorization of transactions from the custody of related assets. B.Operational responsibility from the record keeping responsibility. C.Human resources function from the controllership function. D.Administrative controls from the internal accounting controls. 122.Which of the following departments or positions most.
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79.An electronic payroll time keeping device that collects time and attendance data when employees enter their time sheets is called: A.Timekeeper B.Paymaster C.Electronic time clock D.Badge readers 80.An electronic payroll time keeping device that collects data when employee identification badges are swiped through an electronic reader are called: A.Timekeeper B.Badge reader C.Paymaster D.Electronic time clock 81.In order to smooth out.
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153. Hitchins, Inc. computerization. Required: Assume that Hitchins, Inc. is preparing to computerize the manual input processes such as completing a receiving report.  Use Microsoft Excel to perform the following: Design an appropriate format for a data entry screen that could be used at the receiving dock to enter information from.
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- CHAPTER 10 - MULTIPLE CHOICE 49.Routine business transactions would include which of the following? A.Purchase of merchandise inventory. B.Payment of principal on a note. C.Purchase of fixed asset. D.Paying wages and salaries to employees. 50.This type of transaction is one that a business encounters on a regular, recurring basis.  The volume of the transactions is.
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21.The human resources department should be responsible for the record keeping function related to payroll. 22.The cash disbursements department should have the responsibility of signing, essentially approving all paychecks. 23.The paymaster should be independent from the departmental supervision responsibilities, so that it can be determined that the paychecks are being distributed to.
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11.It is common that personnel related expenses are one of the largest expenses reported on the company’s income statement. 12.A challenging area of payroll computation is computing the amount of deductions related to each employee’s pay. 13.Accounting software is available to assist with payroll but it is not very efficient because of.
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157. Using a search engine, search the internet for information about Evaluated Receipt Settlement, or ERS.    You may have more success by searching for the terms ERS and invoices together in one search.  Based on what you read about ERS on the web, what appears to be the difficulties encountered when.
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– CHAPTER 11– TRUE / FALSE 1. Because of the manpower and computer programmers required to control robotics, robotics has had little influence manufacturing. 2. Resources required in the conversion process include materials, labor, overhead, and fixed assets. 3. Even if a firm is a service or sales firm it may conduct some sort of.
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41.For most companies, fixed asset acquisitions are considered to be routine processes. 42.One area where earnings management may be prevalent due to the judgmental nature of the underlying data is with fixed assets. 43.Earnings management related to fixed assets would occur when reducing expenses by decreasing the useful life of the fixed.
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158. Explain the ways in which electronic transfer of funds can improve payroll processes.  159. Explain the kinds of information that must be maintained in fixed asset records during the asset continuance phase.  160. The authorization to purchase fixed assets should include investment analysis.  Explain the two parts of investment analysis.  161..
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99.The security of assets and documents would include all of the following, except: A.Supervisors need to make certain that the assets are being used for their intended purpose. B.Designated members of management should be assigned responsibility for the disposal of any assets C.Maintaining adequate insurance coverage D.Electronic controls are needed to control access to.
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144. Explain why categorizing fixed asset expenditures as expenses or capital assets are important. 145. What are some of the practical characteristics of fixed assets that complicate the calculation of depreciation?  146. What is different about the nature of fixed asset purchasing that makes authorization controls important?  147. Explain the necessity of supervision.
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151. Discuss AZO Company using a business process reengineering project (BPR).  152. The following list presents statements regarding the expenditure processes. Each statement is separate and should be considered to be from a separate company.  For each statement, determine whether it is an internal control strength or weakness, then describe why.
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- CHAPTER 10 - TRUE / FALSE 1.It is not necessary to get specific authorization for each individual routine transaction. 2.Routine transactions refer to common business transactions such as payroll and fixed asset transactions. 3.Accounting for a fixed asset over the life of the asset would have features of non-routine transactions only. 4.The payroll.
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– CHAPTER 9 – SHORT ESSAY 142. Describe what is likely to occur if company personnel erroneously recorded a purchase transaction for the wrong vendor?  What if a cash disbursement was posted to the wrong vendor?  Identify internal controls that would detect or prevent this from occurring.  143. Debate the logic used in.
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108.A manager suspects that certain employees are ordering merchandise for themselves over the Internet without recording the purchase or receipt of the merchandise.  When vendors’ invoices arrive, one of the employees approves the invoices for payment.  After the invoices are paid, the employee destroys the invoices and related vouchers.  To.
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– CHAPTER 9 – SHORT ANSWER QUESTIONS 116. Name the first document that should be prepared when a production employee recognizes that the quantity of goods on hand is insufficient to meet customer demand.  117. How does the maintenance of a receiving log enhance internal controls?  118. Why should a receiving.
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– CHAPTER 10 – SHORT ANSWER QUESTIONS 129. Sales and inventory purchases are routine processes that occur nearly every day in a business. How are these routine processes different from payroll or fixed asset processes?  130. Even though payroll and fixed asset processes may not be as routine as revenue processes, why are.
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– CHAPTER 9 – END OF CHAPTER QUESTIONS: 98.Within the purchases processes, which of the following is the first document prepared and thereby the one that triggers the remaining purchasing processes? A.The invoice B.The receiving report C.The purchase order D.The purchase requisition 99.Personnel who work in the receiving area should completed all of the following processes,.
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168. Read the article at this link: http://www.fixedassetinfo.com/articles/adventures1.asp.  Describe why the scenario described is unethical.  Also, list controls or other steps that management could have taken to prevent or detect this scenario.  169. Using an Internet search engine, search for the terms “Patti Dale” and theft (be sure to include the quotation marks.
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78.When a payment has been made, the cash disbursements clerk will clearly mark the invoice with information pertaining to the date and the check number used to satisfy the obligation.  This process is called: A.Marking the invoice B.Retiring the invoice C.Cancelling the invoice D.Destroying the invoice 79.A chronological listing of all payments is referred to.
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21. MRP stands for Management Resource Projections. 22. Just-in-time (JIT) production systems are concerned with minimizing or eliminating inventory levels of all inventory items. 23. Earnings management is the act of misstating financial information in order to improve financial statement results. 24. Absorption costing involves the inclusion of both variable and fixed costs in the.
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145. Describe how the matching of key information on supporting documents can help a company determine that purchase transactions have been properly executed.  146. Describe how the use of pre-numbered forms for debit memos can help a company determine that purchase return transactions have not been omitted from the accounting records. .
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136. Identify the category of risk that can be reduced by using authority tables, computer logs, passwords, and firewalls.  137. Explain why the availability of computer systems in the receiving department is such an important component of an automated expenditures process.  138. Identify three ways that buyers and sellers may be linked.
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11. The final hub in the logistics function is sales. 12. Standard costs are expected costs based on projections of a product’s required resources. 13. Standard costs include direct materials, direct labor, and overhead. 14. Perpetual inventory systems involve updating the inventory and cost of sales accounts only at the end of the period. 15..
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69.Types of fraud that may occur in the payroll function include all of the following, except: A.Overstated hours B.Incorrectly computed tax withholdings C.False claims of sick leave D.Pay claims made by ghost employees 70.Which of the following correctly states a reconciliation process to be completed related to payroll? A.Time sheets reconciled to the payroll register. B.Payroll register.
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- CHAPTER 9 - MULTIPLE CHOICE 38.The policies and procedures that employees following in completing the purchase of goods or materials, capturing vendor data and purchase quantities, and routing the resulting purchasing documents to the proper departments within the company are called: A.Systems B.Processes C.Activities D.Requisitions 39.The information from a purchase must flow into the purchase.
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– CHAPTER 9 – PROBLEMS 149. Identify an internal control procedure that would reduce the following risks in a manual system: a.The purchasing department may not be notified when goods need to be purchased.  b.Accounts payable may not be updated for items received.  c.Purchase orders may be prepared based on unauthorized requisitions. .
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167. Using an Internet search engine, search for the phrase “fixed asset software” (be sure to include the quotation marks).  Examine the results to find companies that sell fixed asset software.  List and explain some of the features of fixed asset software that these companies use as selling points for their.
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– CHAPTER 10 – END OF CHAPTER QUESTIONS: 111.Which of the following statements about payroll and fixed asset processes is true? A.Both have only routine processes B.Both have only non-routine processes C.Both have routine and non-routine processes D.Payroll has only routine processes, while fixed assets has only non-routine processes 112.For a given pay period, the complete.
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169. Following are ten internal control failures related to the revenues and cash collection processes. _____ A customer ordered 12 boxes of your product (total of 144 items) for express shipment.  Your data entry clerk inadvertently entered 12 individual items. _____ You enter sales and accounts receivable data in batches at the.
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126. Identify some inefficiencies inherent in a manual expenditures processing system.  127. What are the advantages of BPR?  128. List three examples of BPR used in the expenditures processes.  129. Explain how system logic errors could cause cash management problems.  130. Explain how system availability problems could cause cash management.
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58.Internal control activities within the purchasing process, identified as segregation of duties, would include all of the following, except: A.Responsibility for authorization, custody, and record keeping are to be assigned to different individuals. B.Duties related to requisitioning, ordering, purchase approval, receiving, inventory control, accounts payable, and general accounting are to be delegated.
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– CHAPTER 10 – SHORT ESSAY 154. Describe the type of information that a human resources department should maintain for each employee.  155. The calculation of gross and net pay can be a complicated process.  Explain the items that complicate payroll calculations. 156. Explain how duties are segregated in payroll.  Specifically, who or.
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88.In order to help safeguard the security and confidentiality in an electronic business environment, a company should implement controls such as user ID, password, log-in procedures, access levels, and authority tables in order to reduce the risk of: A.Unauthorized access B.Incomplete audit trail C.Virus and worm attacks D.Repudiation of purchase transactions 89.In order to help.
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– CHAPTER 10 – PROBLEMS 165. Explain the process of approval of purchases for fixed assets.  How does this process differ from that of purchasing raw materials?  166. Using an Internet search engine, search for the phrase “biometric time recording” (be sure to include the quotation marks).  Based on your search results, describe.
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