Purchase Order – Accounting And Finance Exam
The key terms in these Finance chapters include Purchase Order.
A reverse auction would likely be best suited to the purchase of
automobiles.
soybeans. – Correct
designer clothing.
central processing units (CPUs).
A JIT inventory system would be especially useful for a company that manufactures
motor oil.
toothpaste.
toys associated with new movie releases. – Correct
alarm clocks.
An important control that can be used to reduce the risk of employee kickbacks is
use of ID badges.
off-site restrooms.
job rotation. – Correct
surveillance cameras.
Why might an organization find it most beneficial to involve accountants in product design?
Because generally at least 65% of product costs are determined in the design stage and accountants can help minimize product costs – Correct
Because accountants are generally able to identify what consumers want in a new product
Which of the following controls can minimize the threat of errors in processing payroll?
Issuing earnings statements to employees. – Correct
Conducting criminal background investigation checks of all applicants for finance related positions.
Using biometric authentication.
Redepositing unclaimed paychecks and investigating cause.
An effective way an organization can eliminate paper paychecks while maintaining adequate accounting records is to
pay with money orders.
use Electronic Funds Transfer.
use direct deposit. – Correct
pay in cash only.
A reverse auction would likely be best suited to the purchase of
automobiles.
soybeans. – Correct
designer clothing.
central processing units (CPUs).
A JIT inventory system would be especially useful for a company that manufactures
motor oil.
toothpaste.
toys associated with new movie releases. – Correct
alarm clocks.
An important control that can be used to reduce the risk of employee kickbacks is
use of ID badges.
off-site restrooms.
job rotation. – Correct
surveillance cameras.
The management at Barks-a-Million is considering a new inventory control system. The current system is inadequate because it frequently causes stockouts that interrupt production and lead to excess stock of other materials — resulting in markdowns and high carrying costs. The new system will focus on reducing or completely eliminating carrying costs, most likely employing
a just-in-time inventory system. – Correct
materials requirements planning.
a reorder point.
the economic order quantity.
Which of the following is not a common control for ensuring inventory is secure and inventory counts are accurate?
making physical counts of inventory at least once per year
transfers of inventory with proper documentation
sending “blind” copies of purchase orders to inventory control for data entry – Correct
control of physical access to the inventory storage areas
Ngai Nhung is the sales manager at Hung Technologies. At lunch with the company CEO, Ngai complained that a recent shipment from a vendor had been unsatisfactory and was returned. As a result, Hung’s purchasing manager needed to send a ________ to the supplier.
debit memo – Correct
receiving report
purchase order
blanket purchase order
A reverse auction would likely be best suited to the purchase of
automobiles.
soybeans. – Correct
designer clothing.
central processing units (CPUs).
A JIT inventory system would be especially useful for a company that manufactures
motor oil.
toothpaste.
toys associated with new movie releases. – Correct
alarm clocks.
An important control that can be used to reduce the risk of employee kickbacks is
use of ID badges.
off-site restrooms.
job rotation. – Correct
surveillance cameras.
Which of the following is not a common control for ensuring inventory is secure and inventory counts are accurate?
making physical counts of inventory at least once per year
transfers of inventory with proper documentation
sending “blind” copies of purchase orders to inventory control for data entry – Correct
control of physical access to the inventory storage areas
Ngai Nhung is the sales manager at Hung Technologies. At lunch with the company CEO, Ngai complained that a recent shipment from a vendor had been unsatisfactory and was returned. As a result, Hung’s purchasing manager needed to send a ________ to the supplier.
debit memo – Correct
receiving report
purchase order
blanket purchase order
The management at Barks-a-Million is considering a new inventory control system. The current system is inadequate because it frequently causes stockouts that interrupt production and lead to excess stock of other materials — resulting in markdowns and high carrying costs. The new system will focus on reducing or completely eliminating carrying costs, most likely employing
a just-in-time inventory system. – Correct
materials requirements planning.
a reorder point.
the economic order quantity.