Chap 13

The primary purpose of the acquisition/payment process is to:

• A. Obtain the resources the organization needs.

• B. Pay for the resources the organization needs.

• C. Both obtain the resources the organization needs and pay for the resources the organization needs.

• D. Neither obtain the resources the organization needs nor pay for the resources the organization needs.

The acquisition/payment process:

• A. Helps an organization create value for its stakeholders.

• B. Can only be applied if an organization sells a product.

• C. Both helps an organization create value for its stakeholders and can only be applied if an organization sells a product.

• D. Neither helps an organization create value for its stakeholders nor can only be applied if an organization sells a product.

The acquisition/payment process helps an organization create value for its stakeholders, which can include:

• A. Vendors.

• B. Stockholders.

• C. Employees.

• D. All of these.

The acquisition/payment process helps an organization create value for its stakeholders. Which of the following authors developed a model that assists in understanding value creation?

• A. Porter

• B. Vroom

• C. Pacioli

• D. Gates

The items and activities commonly associated with the acquisition/payment process can be seen in:

• A. The income statement only.

• B. The balance sheet only.

• C. The statement of cash flows only.

• D. All of these.

Which of the following balance sheet items are commonly associated with the acquisition/payment process?

• A. Inventory and accounts payable

• B. Purchases and accounts receivable

• C. Cash paid to vendors

• D. Cash received from the sale of inventory

Which of the following statements best explains the relationship between the acquisition/payment process and the sales/collection process?

• A. The same transaction can be considered part of both processes.

• B. All organizations that have a sales/collection process also have an inventory acquisition/payment process.

• C. Both the same transaction can be considered part of both processes and all organizations that have a sales/collection process also have an inventory acquisition/payment process.

• D. Neither the same transaction can be considered part of both processes nor all organizations that have a sales/collection process also have an inventory acquisition/payment process.

Which of the following balance sheet items is least likely to be associated with the acquisition/payment process?

• A. Cash

• B. Accounts payable

• C. Raw materials

• D. Treasury stock

Bumble Beasley said: "The acquisition/payment process, which often deals with the asset inventory, creates the greatest value of all business processes." Which of the following terms, if eliminated from Bumble's statement, would make it stronger?

• A. Asset

• B. Inventory

• C. Greatest

• D. None of these; Bumble's statement is fine the way it is.

As the first step in the acquisition/payment process, goods are requested based on:

• A. Monitored need.

• B. The amount of cash in the bank.

• C. The relationship between a buyer and a seller.

• D. The use of information technology.