ACG 4401 FINAL EXAM QUESTIONS WITH VERIFIED
ANSWERS
The first step in a business 2 business sales transaction with an existing customer is -
Answers - receipt of purchase of purchase order (i.e., Sales Order Entry)
Which department(s) should not have access to customers' checks/payments? -
Answers - Accounts receivable/billing
Which department should have authorization in a sales order transaction? - Answers -
Credit
Which department(s) should have access/custody to a company's inventory assets? -
Answers - Inventory control / shipping
Which of the following is the first step when choosing a vendor for the first time? -
Answers - Requirement determination
Which function should the Purchasing department have in the expenditure cycle (i.e.,
what did I say in the tips video this department had)? - Answers - Authorization
What did I say when covering the slides was the biggest threat to the "approving
invoice" process? - Answers - Fictitious invoices
Goods should be shipped to a customer after the bill (invoice) was sent. - Answers -
False
The context DFD of the expenditure cycle indicates that a purchase order is sent to the
vendor who later sends an invoice to the customer. - Answers - True
Failure to send a bill (invoice) is a threat in the expenditure cycle. - Answers - False
According to the JOA article about Walmart's AI-powered store, which of the following
statements is FALSE? - Answers - Walmarts AI powered store will be duplicated exactly
in all 4800 stores across the US.
Which of the following expenditure cycle activities can be eliminated through the use of
IT or reengineering? - Answers - Approving vendor invoices
In the revenue cycle, which department has the same function (i.e., authorization,
record keeping, and custody ) as Billing and A/R? - Answers - General Ledger
, Most costs are locked in at which stage in the production cycle? - Answers - Product
design
Which of the following represents a sales order process threat (the first process in an
existing business relationship)? - Answers - Stockouts
In the JOA article "Billing Schemes, Part 1, Shell Companies... "why did Dennis (the
internal auditor) feel lucky at the end of the story? - Answers - Because his company got
most of the money back.
Which if the following represents an appropriate control to prevent paying the same
invoice twice? - Answers - Issuing checks only for complete voucher packages.
Which of the following is NOT a threat in the expenditure cycle relating to cash
disbursements? - Answers - Inventory theft
The accounts receivable clerk takes information from the _____ when entering
information into the system for a cash collection on a credit sale. - Answers -
Remittance advice (slip)
Which person/department has the authorization to initiate the write-odd of an accounts
receivable? - Answers - Credit department
Which expenditure cycle department has a different function (i.e., record keeping,
authorization, custody) from the rest? - Answers - Receiving
In the expenditure cycle, why did we way that raw materials delivered to the receiving
department should be moved to the department(s) who ordered the materials as soon
as possible? - Answers - To mitigate the risk of theft
Which of the following revenue cycle activities can be potentially eliminated by using
technology (e.g., electronic data interchange)? - Answers - Billing
Production planning is the only department in the production cycle with the authorization
function. - Answers - True
Planning & scheduling is the first step in the production cycle. - Answers - False
For good internal control, accounting functions should never handle cash. - Answers -
True
According to the JOA article "Cybersecurity attack hits world's largest meat supplier..."
JBS was able to resolve the attack immediately with no delay in vendor transactions. -
Answers - False
ANSWERS
The first step in a business 2 business sales transaction with an existing customer is -
Answers - receipt of purchase of purchase order (i.e., Sales Order Entry)
Which department(s) should not have access to customers' checks/payments? -
Answers - Accounts receivable/billing
Which department should have authorization in a sales order transaction? - Answers -
Credit
Which department(s) should have access/custody to a company's inventory assets? -
Answers - Inventory control / shipping
Which of the following is the first step when choosing a vendor for the first time? -
Answers - Requirement determination
Which function should the Purchasing department have in the expenditure cycle (i.e.,
what did I say in the tips video this department had)? - Answers - Authorization
What did I say when covering the slides was the biggest threat to the "approving
invoice" process? - Answers - Fictitious invoices
Goods should be shipped to a customer after the bill (invoice) was sent. - Answers -
False
The context DFD of the expenditure cycle indicates that a purchase order is sent to the
vendor who later sends an invoice to the customer. - Answers - True
Failure to send a bill (invoice) is a threat in the expenditure cycle. - Answers - False
According to the JOA article about Walmart's AI-powered store, which of the following
statements is FALSE? - Answers - Walmarts AI powered store will be duplicated exactly
in all 4800 stores across the US.
Which of the following expenditure cycle activities can be eliminated through the use of
IT or reengineering? - Answers - Approving vendor invoices
In the revenue cycle, which department has the same function (i.e., authorization,
record keeping, and custody ) as Billing and A/R? - Answers - General Ledger
, Most costs are locked in at which stage in the production cycle? - Answers - Product
design
Which of the following represents a sales order process threat (the first process in an
existing business relationship)? - Answers - Stockouts
In the JOA article "Billing Schemes, Part 1, Shell Companies... "why did Dennis (the
internal auditor) feel lucky at the end of the story? - Answers - Because his company got
most of the money back.
Which if the following represents an appropriate control to prevent paying the same
invoice twice? - Answers - Issuing checks only for complete voucher packages.
Which of the following is NOT a threat in the expenditure cycle relating to cash
disbursements? - Answers - Inventory theft
The accounts receivable clerk takes information from the _____ when entering
information into the system for a cash collection on a credit sale. - Answers -
Remittance advice (slip)
Which person/department has the authorization to initiate the write-odd of an accounts
receivable? - Answers - Credit department
Which expenditure cycle department has a different function (i.e., record keeping,
authorization, custody) from the rest? - Answers - Receiving
In the expenditure cycle, why did we way that raw materials delivered to the receiving
department should be moved to the department(s) who ordered the materials as soon
as possible? - Answers - To mitigate the risk of theft
Which of the following revenue cycle activities can be potentially eliminated by using
technology (e.g., electronic data interchange)? - Answers - Billing
Production planning is the only department in the production cycle with the authorization
function. - Answers - True
Planning & scheduling is the first step in the production cycle. - Answers - False
For good internal control, accounting functions should never handle cash. - Answers -
True
According to the JOA article "Cybersecurity attack hits world's largest meat supplier..."
JBS was able to resolve the attack immediately with no delay in vendor transactions. -
Answers - False
