Expenditure Cycle

Question 0

The need to place an order for inventory is specified by the

Answer 0

Reorder point

Question 1

The traditional approach to inventory management to ensure sufficient quantity on hand to maintain production is known as

Answer 1

Economic order quantity

Question 2

When goods are being ordered from a vendor, which electronic files are either read or updated

Answer 2

Inventory, vendors, and open purchase orders

Question 3

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

Answer 3

Credit rating of the vendor

Question 4

A purchase order is

Answer 4

All of the above are true

Question 5

Stepanek sales and services provides free coffee to employees. Stepanek arranged with ingebrigstons joe to deliver as many coffee packages,sugar, creamer, and filters as needed each week. Ingebrigstons sends a monthly invoice for stepanek to pay. This arrangement is best desribed as a

Answer 5

Blanket purchase order

Question 6

One of the major responsibilities of the receiving department is

Answer 6

Deciding if the delivery should be accepted

Question 7

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

Answer 7

Price of the items

Question 8

Identify in which of the following scenarios a company could adjust the balance due the vendor by issuing a debit memo

Answer 8

All of the above are possible scenarios

Question 9

This disbursement voucher and supporting documents are sent to the —- for payment prior to the due date

Answer 9

Cashier