Reveenue Cycle

1.      In a merchandising firm, authorization for the payment of inventory is the responsibility of

• a.  inventory control

• b.   purchasing

• c.  accounts payable

• d. cash disbursements

The documents in a voucher packet include all of the following except

•   a check

• a purchase order

• a receiving report

• a supplier’s invoice

To maintain a good credit rating and to optimize cash management, cash disbursements should arrive at the vendor’s place of business

• as soon as possible

• on the due date

• on the discount date

• by the end of the month

The cash disbursement clerk performs all of the following tasks except

• reviews the supporting documents for completeness and accuracy

• prepares checks

• signs checks

• marks the supporting documents paid

When a cash disbursement in payment of an accounts payable is recorded

• the liability account is increased

• the income statement is changed

• the cash account is unchanged

• the liability account is decreased

If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

• True

• False

Inspection of shipments in the receiving department would be improved if the documentation showed the value of the inventory.

• True

• False

Inventory control should be located in the warehouse.

• True

• False

Which document helps to ensure that the receiving clerks actually count the number of goods received?

• packing list

• blind copy of purchase order

•   shipping notice

• invoice

When the goods are received and the receiving report has been prepared, which ledger may be updated?

•   standard cost inventory ledger

• inventory subsidiary ledger

• general ledger

•        accounts payable subsidiary ledger