ch 12 test 2 Flashcards


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1

Receiving Department

Inspects the goods and records their quality and quantity.

2

Accounting Department

enters purchases into the accounts payable system after comparing the purchase order, invoice, and receiving report.

3

Voucher

a cover sheet containing all supporting documentation for an acquistion

4

MRP

inventory method that focuses on estimating future demand

5

Debit memo

Document indicating a reduction in the amount owed to a vendor because of returned goods or an allowance method,

6

Request for quotation

Documents used to request competitive bids from vendors

7

Accounts payable master file

A listing of the amount owed to each vendor at a point in time

8

Voucher

A document used to establish a formal means of recording and controlling acquisitions.

9

Check register (Cash disbursement journal)

The listing or report that includes all cash payments for a given period.

10

Blind count

Counters in receiving do not have access to quantities shown on purchase orders.

11

Purchase requisition

Document used to request a purchase

12

Approved vendor list

A summary of vendors approved for use by the purchasing function.

13

Voucher package

A collection of documents that are reviewed and approved to authorize a transaction.

14

Receiving report

Prepared to document the receipt of deliveries from vendors.

15

Purchase order

The document issued to a vendor to initiate a purchase.

16

Purchase order

Document prepared by the purchasing department indicating the description, quantity, and related information for goods and services that the company intends to purchase.

17

Invoice verification

The review of purchasing documentation prior to authorizing payment to vendors.

18

Suppliers

In the expenditure cycle, the primary external exchange of information occurs with

19

Sales order

Starting point in revenue cycle?

20

What are the optimal prices for each product or service

To accomplish the objectives set forth in the expenditure cycle, a number of key management decisions must be addressed. Which of the decisions below is not ordinarily found as part of the expenditure cycle?

21

Economic order quantity

The first major business activity in the expenditure cycle is ordering inventory and supplies. The traditional approach to management of inventory to ensure sufficient inventory to maintain production is known as?

22

Carrying costs

EOQ includes several variables that must be taken into consideration when calculating the optimal order size. One variable, the costs associated with holding inventory, is referred to as?

23

Reorder point

The decision of when to place an order in a traditional inventory system is specified by the

24

To reduce required inventory levels by scheduling production by estimating needs

One alternative approach to managing inventory is materials requirements planning (MRP). What is a key feature of this approach?

25

The uncertainty about when materials are needed is reduced, thus reducing the need to carry large levels of inventory.

The major advantage of an MRP inventory system is that it reduces inventory levels. This is because

26

A just in time inventory system

The inventory management approach that attempts to minimize, if not eliminate, carrying and stock out costs is?

27

MRP schedules production to meet estimated sales needs; JIT schedules production to meet customer demands

What is the key difference between the MRP and JIT inventory management approaches?

28

Credit rating of the vendor

A key decision in ordering is selecting a suitable vendor. Which of the following would not be a major criterion in vendor selection?

29

A purchase order

The paper document or electronic form that formally requests a supplier to sell and deliver specified products at designated prices is called?

30

All of the above

paper document or electronic form that formally requests a supplier to sell and deliver specified products at designated prices

request for delivery of certain items and quantities

A contract between the buyer and vendor once accepted by the vendor

A purchase order is

31

Blanket purchase order

A standing order to purchase specified items at a designated price, from a particular supplier for a set period of time, is called a?

32

Deciding if the delivery should be accepted

The receiving department has two major responsibilities in connection with the expenditure cycle. Identify one of these responsibilities

33

Price of the items

Which of the following is generally not shown on a receiving report?

34

Requiring all suppliers to have bar codes on their items to allow electronic scanning upon delivery by the receiving department

What is one of the best ways to improve the overall efficiency and effectiveness of the receipt and storage of ordered items?

35

EFT

All of the following technologies could be useful aids in the receiving process except?

36

accounts payable department; controller

Vendor invoices are approved by the _______, which reports to the _______?

37

Nonvoucher

A ________ system is a system in which an approved invoice is posted to the vendor account and is stored in an open invoice file until payment is made by check.