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ACCT 460 Exam 2 With Real Questions And Answers 2024
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ACCT 460 Exam 2 With Real Questions And Answers 2024
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ACCT 460 Exam 2 With Real QuestionsAnd Answers 2024
Why .must .a .company .have .systems .and .processes .in .place? .- .correct .answer.to .capture,
.record, .summarize, .and .report .transactions
When .do .employees .have .to .follow .processes? .- .correct .answer.- .in .completing .a
.purchase
- .capturing .purchase .related .data
- .routing .purchasing .documents .to .related .departments
Where .must .the .information .resulting .from .a .purchase .flow .into? .- .correct .answer.-
.purchase .recording .systems
- .the .accounts .payable .and .cash .disbursement .systems
- .the .inventory .tracking .systems
What .is .the .basic .revenue .process? .- .correct .answer.customer .gives .cash .to .company
.who .provides .customer .with .goods
what .is .the .basic .expenditures .process? .- .correct .answer.company .gives .cash .to .vendor
.who .gives .goods .or .materials .to .company
What .is .the .main .most .common .expenditure .process? .- .correct .answer.updating .the
.records .affected .such .as .A/P, .cash, .inventory, .and .expenses
what .are .other .common .expenditure .processes? .- .correct .answer.- .prepare .a .purchase
.order
- .notify .vendor .of .goods .needed
- .receive .goods
- .record .the .payable
- .pay .invoice
what .is .a .purchase .requisition? .- .correct .answer.A .purchase .requisition .is .created .by .the
.sales .team .when .inventory .is .dropped .to .reorder .level, .then .it .is .sent .to .the .purchase
.department .and .a .purchase .order .is .made.
what .is .a .bill .of .lading? .- .correct .answer.This .is .a .document .that .lists .the .contents .of .a
.shipment .from .a .manufacturer .or .vendor.
,what .is .a .receiving .report? .- .correct .answer.establishes .an .initial .record .of .the .receipt .of
.the .inventory
what .is .cutoff? .- .correct .answer.Transactions .and .events .have .been .recorded .in .the
.correct .accounting .period
Between .what .two .receipts .is .there .a .time .lag? .- .correct .answer.receipt .of .inventory .and
.receipt .of .invoice
What .does .the .time .lag .problem .create? .- .correct .answer.the .recording .of .the .liability .in
.the .correct .period
What .must .be .recorded .in .the .same .period? .- .correct .answer.inventory .receipt .and
.physical .receipt .of .goods
In .a .typical .situation, .inventory .purchases .on .account .is .- .correct .answer.DR .Inventory
CR .A/P
When .there .is .a .cutoff .issue, .the .receipt .of .inventory .journal .entry .is: .- .correct .answer.DR
.Inventory
CR .Temporary .Account
When .there .is .a .cutoff .issue .and .the .company .receives .the .invoice, .the .journal .entry .to
.update .its .records .is: .- .correct .answer.DR .Temporary .Account
CR .A/P
What .is .an .example .of .a .temporary .account? .- .correct .answer.GR/IR .- .Goods
.Receipt/Invoice .Receipt
What .are .the .three .risks .related .to .purchasing .processes? .- .correct .answer.- .validity
- .accuracy
- .completeness
What .is .the .validity .risk? .- .correct .answer.- .invalid .transactions .may .have .been .recorded
- .fictitious .transactions .may .have .been .recorded
- .recorded .in .wrong .vendor .account
what .is .the .accuracy .risk? .- .correct .answer.- .inaccurate .transactions .may .have .been
.recorded
- .wrong .amount, .quantity, .etc
what .is .the .completeness .risk? .- .correct .answer.- .incomplete .transactions
- .transactions .may .have .been .omitted, .duplicated, .or .not .recorded .in .a .timely .manner
, What .are .the .controls .in .the .purchasing .process? .- .correct .answer.- .authorization .of
.transactions
- .segregation .of .duties
- .adequate .records .and .documents
- .security .assets .and .documents
- .independent .checks .and .reconciliation
When .is .a .purchase .requisition .valid? .- .correct .answer.- .approved .by .an .authorized
.employee
- .within .the .budgeted .amount .for .the .item
- .actually .required .by .the .organization
Where .should .purchases .be .made .from? .- .correct .answer.- .an .authorized .vendor .that
.has .been .investigated .for .the .quality .of .its .processes .and .products
When .does .management .provide .authorization .to .do .business .with .a .vendor? .- .correct
.answer.when .the .vendor .is .added .to .the .vendor .master .data
What .are .some .issues .surrounding .input .completeness .of .purchase .requisitions? .-
.correct .answer.- .failure .to .process .a .purchase .requisition .= .lost .customer .sales .or
.suspension .of .production
- .processing .purchase .requisitions .more .than .once .= .excess .inventory .or .other
.unnecessary .purchases
what .are .some .issues .surrounding .input .accuracy .of .purchase .requisitions? .- .correct
.answer.- .inaccurate .processing .= .wrong .goods .or .quantities .to .be .purchased
- .may .result .in .disruption .of .sales .or .manufacturing .operations
What .should .companies .do .to .avoid .risks? .- .correct .answer.- .select .a .high .quality .vendor
- .ensure .right .goods .are .received .in .timely .manner
- .protect .inventory
- .prevent .unauthorized .access .to .vendor .and .purchasing .master .data
What .controls .are .over .the .purchase .returns .process? .- .correct .answer.- .authorization .of
.transactions
- .segregation .of .duties
- .adequate .records .and .documents
- .security .of .assets .and .documents
- .independent .checks .and .reconciliation
- .cost-benefit .considerations
When .is .the .payment .process .triggered .and .when .does .it .begin? .- .correct .answer.-
.triggered .by .the .due .date
- .begins .with .preparation .of .a .list .of .payments .due
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