Question :
21) A payment packet of documents:
A) reports the arrival of : 1230141
21) A payment packet of documents:
A) reports the arrival of items purchased.
B) is sent by the purchasing department to the vendor selling the item.
C) identifies the need for merchandise and begins the purchasing process.
D) includes the invoice, receiving report and purchase order.
22) When approving an invoice for payment:
A) the receiving department should examine the payment packet to make sure all the documents agree.
B) after payment, the payment packet should be stamped “paid”.
C) checks should be returned to the department who prepared them for mailing.
D) the person who ordered the goods should examine the payment package to make sure all the documents agree.
23) Which of the following indicates the order by which documents are prepared in the purchasing process?
A) purchase order, payment packet, invoice
B) invoice, receiving report, purchase order
C) purchase order, receiving report, invoice, payment packet
D) purchase order, receiving report, payment packet
24) The following duties should always be segregated:
A) purchasing of goods and receiving of goods.
B) purchasing of goods and payment of the invoice.
C) purchasing of goods, receiving of goods, and approving and paying for goods.
D) all of the above.
25) The entry to establish the petty cash fund is:
A) a debit to Miscellaneous Expense and a credit to Cash.
B) a debit to Miscellaneous Expense and a credit to Petty Cash.
C) a debit to Petty Cash and a credit to Cash.
D) a debit to Cash and a credit to Petty Cash.
26) A petty cash fund:
A) is established to pay large nonrecurring expenses.
B) is established to pay on-the-spot minor purchases.
C) should have a least two custodians.
D) should issue checks for certain purchases.
27) Which of the following is a correct statement about the petty cash fund?
A) To set up the petty cash fund, a check is issued to the chief financial officer.
B) The custodian of the fund has sole responsibility for accounting for the fund.
C) The sum of the cash in the fund must always equal the opening balance of the fund.
D) The petty cash fund must be maintained at a bank.
28) Payments by check is an important internal control for all of the following reasons EXCEPT for:
A) the checks provided a record of the payment.
B) the check must be signed by an authorized official.
C) all payments are made via a lock-box system.
D) before signing the check, the authorized official should study the evidence supporting the payment.
29) ABC Store sells expensive watches. An inventory at the beginning of the day showed 40 watches in the store. 10 new watches were added to the inventory during the day. The point-of-sale terminal recorded 3 watches sold. An inventory taken at the end of the day should show how many watches still in the store?
A) 27
B) 47
C) 53
D) Cannot be determined from the data
30) An imprest petty cash fund of $600 was established for minor disbursements. At the end of the month, the fund included petty cash tickets for the purchase of $207 in supplies, $82 for meals, $86 for fuel, and $76 for taxi fare. How much cash should be left in the fund?
A) $108
B) $149
C) $451
D) $600
