Question

Which of the following serve as examples of strong separation of duties within the context of the acquisition/payment process?

Question 6 options:

	Neither establishing a purchasing department nor requiring all purchases over $500 to be approved by a manager
	Establishing a purchasing department
	Both establishing a purchasing department and requiring all purchases over $500 to be approved by a manager
	Requiring all purchases over $500 to be approved by a manager

Missouri Can Corporation (MCC) manufactures and sells a variety of can types, such as soft drink cans, oil cans and many others. MCC has adopted a functional organization structure that includes departments for accounting, marketing, manufacturing, human resources and information systems. Which of the following appropriately pairs a document with one of MCC's business processes?

Question 14 options:

	Neither production cost report, conversion nor Form 940, human resources
	Both production cost report, conversion and Form 940, human resources
	production cost report, conversion
	Form 940, human resources

Which of the following statements best explains the relationship between the acquisition/payment process and the sales/collection process?

Question 15 options:

	Both the same transaction can be considered part of both processes and all organizations that have a sales/collection process also have an inventory acquisition/payment process.
	All organizations that have a sales/collection process also have an inventory acquisition/payment process.
	Neither the same transaction can be considered part of both processes nor all organizations that have a sales/collection process also have an inventory acquisition/payment process.
	The same transaction can be considered part of both processes.

Consider the following statements as you answer the question:

i. Felix, a cash receipts clerk, applied Allison's payment to the invoices indicated on her remittance advice.
ii. In purchasing books, Allison filled out a form on a bookstore's web site.
iii. The bookstore's web site verified Allison's credit limit.
iv. William, a warehouse worker, prepared Allison's books for shipment.

Which of these statements most clearly relates to the third step in the sales/collection process?

Question 19 options:

	iv
	ii
	i
	iii

Which of the following exemplifies the role and purpose of the sales/collection process?

Question 35 options:

	Neither American Home Shield sells warranties to new homeowners nor new homeowners pay cash to American Home Shield for warranties.
	Both American Home Shield sells warranties to new homeowners and new homeowners pay cash to American Home Shield for warranties.
	New homeowners pay cash to American Home Shield for warranties.
	American Home Shield sells warranties to new homeowners.

Accounting information systems have five generic elements. Which of the following pairs includes two examples of the same element within the context of the acquisition/payment process?

Question 50 options:

	Purchase order and adequate documentation
	Purchase order and schedule of accounts payable
	All of these
	Schedule of accounts payable and adequate documentation

Answer 1

Question 6:

Option C. Both establishing a purchasing department and requiring all purchases over $500 to be approved by a manager

Establishing a Purchase Department & requiring approval serves as a segregation of duties

Question 14:

Option B. Both production cost report, conversion and Form 940, human resources

As the Business of MCC Involves both Production, sale & Human Resources

Question 15:

Option B.

All organisations that have a sales/collection process also have an inventory acquisition/payment process.

Sales Process & Acquisition process are inevitable for any type of organisation.

Question 19:

OPtion A. IV Preparing for shipment is the third step in Sales Process

Question 35:

Option B. Both American Home Shield sells warranties to new homeowners and new homeowners pay cash to American Home Shield for warranties

Question 50:

Option C.All of these

Purchase order,Schedule of Accounts Payable & adequate documentation are the parts of Acquisition/payment process.