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Multiple-Choice
1. Which document helps to ensure that the receiving clerks actually count the number of goods received?
a. Packing list
b. Blind copy of purchase order
c. Shipping notice
d. Invoice
2. When the goods are received and the receiving report has been prepared, which ledger may be updated?
a. Standard cost inventory ledger
b. Inventory subsidiary ledger
c. General ledger
d. Accounts payable
subsidiary ledger
3. Which statement is NOT correct for an expenditure system with proper internal controls?
a. Cash disbursements maintain the check register.
b. Accounts payable
maintains the accounts payable subsidiary ledger.
c. Accounts payable
is responsible for paying invoices.
d. Accounts payable
is responsible for authorizing invoices.
4. Which duties should be segregated?
a. Matching purchase requisitions, receiving reports, and invoices and authorizing payment.
b. Authorizing payment and maintaining the check register.
c. Writing checks and maintaining the check register.
d. Authorizing payment and maintaining the accounts payable subsidiary ledger.
5. Which documents would an auditor most likely choose to examine closely to ascertain that all expenditures incurred during the accounting period have been recorded as a liability?
a. Invoices
b. Purchase orders
c. Purchase requisitions
d. Receiving reports
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