Sample Quiz KEY1
Sample Quiz KEY1
Sample Quiz KEY1
2. The adjustments to accounting records to reflect the decrease in inventory due to a sale
occurs in the
a. Warehouse
b. Billing department
c. Shipping department
d. Inventory control department
4. Copies of the sales order can be used for all of the following except
a. Purchase order
b. Shipping notice
c. Credit authorization
d. Packing slip
13. All of the following departments have a copy of the purchase order except
a. The purchasing department
b. Accounts payable
c. The receiving department
d. General ledger
16. The reason that a blind copy of the purchase is sent to receiving is to
a. Inform receiving when a shipment is due
b. Inform receiving of the type, quantity, and price of items to be delivered
c. Force a count of the items delivered
d. Require that the goods delivered are inspected
18. In a merchandising firm, authorization for the payment of inventory is the responsibility of
a. Inventory control
b. Accounts payable
c. Purchasing
d. Cash disbursements
19. When purchasing inventory, which document usually triggers the recording of a liability?
a. Purchase requisition
b. Receiving report
c. Purchase order
d. Supplier’s invoice
20. Because of time delays between receiving inventory and making the journal entry
a. Liabilities are usually understated
b. Liabilities are usually correctly stated
c. Liabilities are usually overstated
d. None of the above
21. The document that captures the total amount of time that individual workers spend on each
production job is called a
a. Time card
b. Personal action form
c. Job ticket
d. Labor distribution form
22. Which transaction is not processed in the Fixed Asset System?
a. Purchase of building
b. Purchase of raw materials
c. Improvement of equipment
d. Sale of company van
23. Depreciation
a. Is calculated by the department that uses the fixed asset
b. Is recorded weekly
c. Allocates the cost of the asset over its useful life
d. Results in book value approximating fair market value
25. Which of the following is not a characteristic of the fixed asset system?
a. Acquisitions are routine transactions requiring general authorization
b. Acquisition cost is allocated over the expected life of the asset
c. Retirements are reported on an authorized disposal report form
d. Transfer of fixed assets among departments is recorded in the fixed asset subsidiary
ledger
27. Which department is responsible for approving changes in pay rates for employees?
a. Payroll
b. Personnel
c. Treasurer
d. Cash disbursements
33. Which process creates a homogenous product through a continuous series of standard
procedures?
a. Batch process
b. Continuous process
c. Make-to-order process
d. None of the above
34. Which of the following is best likely produced from a continuous process?
a. Wedding invitations
b. Jet aircraft
c. Milk products
d. All of the above
38. The internal control significance of the excess materials requisition is that it
a. Indicates the amount of material released to work centers
b. Indicates the standard quantities required for production
c. Identifies materials used in production that exceed the standard amount allowed
d. Documents the return of raw materials inventory of unused production materials
40. Computer integrated manufacturing groups all of the following technologies except
a. Robotics
b. Automated storage and retrieval systems
c. Materials requirements planning
d. Computer aided design