Expenditure Cycle Quiz

What is the primary focus of the expenditure cycle?

• Customer relationship management

• Sales forecasting

• Inventory management

• Payment for goods and services

Which document is created to request the purchase of goods?

• Purchase order

• Vendor list

• Receiving report

• Remittance advice

What is a key consideration in managing the expenditure cycle?

• Increasing marketing efforts

• Balancing supply and demand

• Maximizing sales

• Reducing employee turnover

What can poor payment practices damage?

• Product quality

• Employee morale

• Cash flow and supplier relationships

• Customer satisfaction

Which of the following is NOT a source document in the expenditure cycle?

• Goods packing slip

• Purchase requisition

• Sales invoice

• Purchase order

What is the first step in the expenditure cycle activities?

• Receive goods

• Pay for goods

• Order goods

• Determine demand for goods

What does the three-way match in purchasing and payment processes involve?

• Purchase order, receiving report, and vendor invoice

• Purchase requisition, vendor list, and payment terms

• Sales order, customer invoice, and payment receipt

• Inventory report, cash flow statement, and supplier list

Which level of decision-making involves determining optimal inventory levels?

• Strategic level

• Operational level

• Tactical level

• Financial level

What does the inventory control department do when it needs more raw materials?

• Records goods received

• Creates a purchase requisition

• Approves payment

• Creates a purchase order

What is the main goal of effective inventory management?

• To minimize costs

• To ensure optimal inventory levels

• To enhance customer service

• To increase sales