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Flashcards in Expenditure Cycle Deck (10)
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0
Q

The need to place an order for inventory is specified by the

A

Reorder point

1
Q

The traditional approach to inventory management to ensure sufficient quantity on hand to maintain production is known as

A

Economic order quantity

2
Q

When goods are being ordered from a vendor, which electronic files are either read or updated

A

Inventory, vendors, and open purchase orders

3
Q

A key decision in ordering is selecting a suitable vendor. Which of the following would not be a major criterion in vendor selection?

A

Credit rating of the vendor

4
Q

A purchase order is

A

All of the above are true

5
Q

Stepanek sales and services provides free coffee to employees. Stepanek arranged with ingebrigstons joe to deliver as many coffee packages,sugar, creamer, and filters as needed each week. Ingebrigstons sends a monthly invoice for stepanek to pay. This arrangement is best desribed as a

A

Blanket purchase order

6
Q

One of the major responsibilities of the receiving department is

A

Deciding if the delivery should be accepted

7
Q

Which of the following is generally not shown on the receiving report

A

Price of the items

8
Q

Identify in which of the following scenarios a company could adjust the balance due the vendor by issuing a debit memo

A

All of the above are possible scenarios

9
Q

This disbursement voucher and supporting documents are sent to the —- for payment prior to the due date

A

Cashier