BP chapter 5 – Flashcards
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in a non-manufacturing firm, purchasing decisions are authorized by
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inventory control
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firms that wish to improve control over CD use a ___ system
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voucher
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Proper segregation of duties requires that the responsibility approving a payment be separated from posting to the __
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CD journal
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one reason for authorizing purchases is to enable efficient ___
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inventory management
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when goods are received, the receiving clerk send copies of the receiving report to the ___ clerk and the ___ clerk
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inventory control, AP
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purpose of the ___ is to authorize the purchasing department to order goods
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purchase requisition
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purpose of the ___ is to record the receipt of goods from vendors
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receiving report
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purchasing, receiving, and AP departments all have a copy of the
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PO
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purpose of the ___ is to order goods from vendors
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PO
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the ___ indicates item description, quantity, and price
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PO
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the ___ is used to accompany physical inventories to the storeroom or warehouse
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receiving report
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when a copy of the receiving report arrives in the ___, it is used to recognized that a PO has closed
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purchasing department
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financial value of a purchase is determined by reviewing the supplier's
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invoice
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in a merchandising firm, authorization for the PAYMENT of inventory is the responsibility of
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AP
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in a merchandising firm, authorization for the PURCHASE of inventory is the responsibility of
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inventory control
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usually triggers the recording of a liability
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invoice
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GL posts the ___ from the AP department
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journal voucher
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GL posts the ___ from the inventory control
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account summary
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GL reconciles the ___ with the inventory subsidiary summary
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inventory control
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the documents in a ___ packet include a PO, RR, and invoice
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voucher
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the ___ clerk prepares checks, marks supporting docs paid, and reviews supporting docs for completeness
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CD
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___ shows that the transaction was authorized
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purchase requisition
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this document will close the open purchase requisition file
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receiving report
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if a co uses a standard cost system, inventory records can be updated from the ___
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receiving report
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if a co uses an actual cost system, the inventory records can be updated from the ___
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invoice
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copies of the ___ are sent to the inventory control, receiving, and AP
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PO
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the cash disbursement function is a ___ function
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treasury
