ACCT 4301 Chapter 13 Concepts Pt. 1 Questions and Correct Answers

Shipping orders are forwarded from the revenue process to A. The materials requisitions department. B. Finished goods stores. C. Raw materials stores. D. Inventory management. Finished goods stores Which of the following departments typically approves purchase requisitions? A. Raw materials stores. B. Cost accounting. C. Inventory management. D. IT. Inventory management Which of the following best describes the occurrence assertion for inventory? A. Purchase requisitions initiated by authorized personnel. B. Recorded inventory actually exists. C. Inventory properly accumulated from journals and ledgers. D. All inventory is recorded. Recorded inventory actually exists Auditors are most likely to ensure that no production activity is scheduled prior to A. Determining standard costs. B. Observing physical inventory. C. Completing the book to physical adjustment. D. Determining the amount of consigned inventory. Observing physical inventory The safeguarding of inventory most likely includes A. Comparison of the information contained on the purchase requisitions, purchase orders, receiving reports, and vendors' invoices.