Chapter 9

Question 1

transaction processing system

Answer 1

a recording and processing system

Question 2

vendor

Answer 2

the person the company buys products from

Question 3

common carrier

Answer 3

trucking, rail , or air freight system

Question 4

purchase requisition

Answer 4

a form prepared to document the need and request that the specific items and quantities be purchased

Question 5

purchase order

Answer 5

document issued to a seller by a buyer that indicates the details product, quantities and agreed upon prices

Question 6

purchases journal

Answer 6

a chronological listing of all PO’s issued to vendors

Question 7

blind purchase order

Answer 7

includes information from the PO but it omits price and quantity of the items order, this is so that the receiving clerk has to check how much is in his shipment

Question 8

bill of lading

Answer 8

provides details of the items included in the delivery, and the receiving clerk must sign that from as verification of receipt

Question 9

packing slip

Answer 9

intended to show quantities and descriptions of items included in the shipment, but it does not generally include prices

Question 10

receiving reports

Answer 10

details the contents and condition of a receipt

Question 11

receiving log

Answer 11

a sequential listing of all receipts

Question 12

cutoff

Answer 12

the date for the end of the accounting period

Question 13

accounts payable subsidiary ledger

Answer 13

includes the detail of amounts owed to each vendor

Question 14

debit memo

Answer 14

the document that identifies the items being returned, along with relevant info regarding vendor, quantity, and price

Question 15

cash management

Answer 15

careful oversight of cash balances, forecasted cash payments, and forecasted cash receipts to insure that adequate cash balances exist to meet obligation

Question 16

remittance advice

Answer 16

usually a tearoff part of a check that has a simple explanation of the reasons for the payment, including invoice numbers and transaction line item descriptions

Question 17

cash disbursements journal

Answer 17

a chronological listing of all payments

Question 18

dual signature

Answer 18

policy where two people sign a check if it is over a certain amount

Question 19

three way match

Answer 19

principle in purchasing where a purchase order is matched to a receiving report and to an invoice

Question 20

business process reengineering

Answer 20

an organized change in business processes for the purpose of improving efficiency and effectiveness

Question 21

automated matching

Answer 21

a computer software technique in which the computer software matches an invoice to its related purchase order and receiving report

Question 22

evaluated receipt settlement

Answer 22

invoiceless system where everything is checked electronically

Question 23

vulnerability testing

Answer 23

examining the system to determine the adequacy of security measures and to identify security deficiencies

Question 24

penetration testing

Answer 24

intentionally attempting to circumvent IT system access controls to determine whether there are weaknesses in any controls

Question 25

intrusion detection

Answer 25

software alerts the organization to hacking or other unauthorized use of the system or network

Question 26

epayables

Answer 26

electronic invoice presentment and payment EIPP

Question 27

procurement cards

Answer 27

credit cards for purchases