Accounting Information Systems: The Processes and Controls, 2nd Edition

END OF CHAPTER MATERIAL

CONCEPT CHECK

1. 1. Within the purchasing processes, which of the following is the first document prepared and thereby the one that triggers the remaining purchasing processes?
   1. The invoice
   2. The receiving report
   3. The purchase order
   4. The purchase requisition
2. 2. Personnel who work in the receiving area should complete all of the following processes except
   1. counting the goods received
   2. inspecting goods received for damage
   3. preparing a receiving report
   4. preparing an invoice
3. 3. Which of the given departments will immediately adjust the vendor account for each purchase transaction so that the company will know the correct amount owed to the vendor?
   1. Purchasing
   2. Receiving
   3. Accounts payable
   4. Shipping
4. 4. One of the most critical controls to prevent theft of inventory purchased is to
   1. require authorization of the purchase requisition
   2. segregate inventory custody from inventory record keeping
   3. compare the purchase order, receiving report, and invoice
   4. segregate the authorization of purchases from the inventory record keeping
5. 5. Internal control is strengthened by the use of a blind purchase order, upon which the quantity of goods ordered is intentionally left blank. This blind copy is used in which department?
   1. The department that initiated the purchase request
   2. The receiving department
   3. The purchasing department
   4. The accounts payable department
6. 6. Which of the following questions ...