Electronic Data – Accounting And Finance Test
The key terms in these Finance chapters include Electronic Data.
A way to incorporate the advantages of Electronic Data Interchange with the Electronic Funds Transfer is
an electronic lockbox.
to use procurement cards.
e-commerce.
Financial Electronic Data Interchange. – Correct
Which of the following controls can minimize the threat of stockouts and excess inventory?
Do not inform receiving employees about quantity ordered.
The use of positive pay.
Perpetual inventory system. – Correct
The use of ERS.
One of the basic activities in the expenditure cycle is the receiving and storage of goods, supplies, and services. What is the counterpart of this activity in the revenue cycle?
shipping function – Correct
cash payments activity
cash collection activity
sales order entry process
Detailed data about reasons for warranty and repair costs is considered an applicable control used to mitigate the threat of
poor product design. – Correct
overproduction.
underproduction.
suboptimal investment of fixed assets.
In addition to identifying and dealing with defective products before they reach customers, quality management is concerned with initiating process changes that will reduce the number of defective units produced. All other things held constant, a decrease in the number of defective units will increase throughput by
increasing productive processing time.
increasing yield. – Correct
Which of the following is not proposed to be an advantage of activity-based costing?
Better product pricing decisions.
Better decision.
Less complex than traditional cost systems. – Correct
A way to incorporate the advantages of Electronic Data Interchange with the Electronic Funds Transfer is
an electronic lockbox.
to use procurement cards.
e-commerce.
Financial Electronic Data Interchange. – Correct
Which of the following controls can minimize the threat of stockouts and excess inventory?
Do not inform receiving employees about quantity ordered.
The use of positive pay.
Perpetual inventory system. – Correct
The use of ERS.
One of the basic activities in the expenditure cycle is the receiving and storage of goods, supplies, and services. What is the counterpart of this activity in the revenue cycle?
shipping function – Correct
cash payments activity
cash collection activity
sales order entry process
Which of the following is not an activity performed in the expenditure cycle?
shipping – Correct
receiving
cash disbursement
Ordering
Which of the following controls can minimize the threat of errors in supplier invoices?
The use of positive pay.
Do not inform receiving employees about quantity ordered.
The use of ERS. – Correct
Perpetual inventory system.
In addition to identifying and dealing with defective products before they reach customers, quality management is concerned with initiating process changes that will reduce the number of defective units produced. All other things held constant, a decrease in the number of defective units will increase throughput by
increasing productive processing time.
increasing yield. – Correct
Just-In-Time (JIT) inventory is best characterized by
frequent deliveries of large quantities to be held at the work centers.
frequent deliveries of smaller quantities of items to the work centers. – Correct
infrequent bulk deliveries of items directly to work centers.
less frequent deliveries of large quantities of goods to central receiving.
A way to incorporate the advantages of Electronic Data Interchange with the Electronic Funds Transfer is
an electronic lockbox.
to use procurement cards.
e-commerce.
Financial Electronic Data Interchange. – Correct
Which of the following controls can minimize the threat of stockouts and excess inventory?
Do not inform receiving employees about quantity ordered.
The use of positive pay.
Perpetual inventory system. – Correct
The use of ERS.
One of the basic activities in the expenditure cycle is the receiving and storage of goods, supplies, and services. What is the counterpart of this activity in the revenue cycle?
shipping function – Correct
cash payments activity
cash collection activity
sales order entry process
Which of the following controls can minimize the threat of errors in supplier invoices?
The use of positive pay.
Do not inform receiving employees about quantity ordered.
The use of ERS. – Correct
Perpetual inventory system.
Just-In-Time (JIT) inventory is best characterized by
frequent deliveries of large quantities to be held at the work centers.
frequent deliveries of smaller quantities of items to the work centers. – Correct
infrequent bulk deliveries of items directly to work centers.
less frequent deliveries of large quantities of goods to central receiving.