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web.groovymark@gmail.com
- December 12, 2024
Question 41
Which strategic agreement is made between buyer and seller for electronic data interchange?
A) Verbal contract
B) International contract
C) Predefined terms agreed before utilization of the service
D) Random service agreement
Answer: C) Predefined terms agreed before utilization of the service
Explanation: For effective electronic data interchange, both parties must agree on specific terms beforehand.
Question 42
What is a reason for sales returns?
A) Late deliveries
B) Invoice errors
C) Employee turnover
D) Misplaced inventory
Answer: A) Late deliveries
Explanation: Late deliveries often result in sales returns because customers may no longer need the goods by the time they arrive.
Question 43
What is a risk associated with one clerk receiving inventory?
A) Faster processing
B) Unauthorized purchases causing excessive inventory
C) Improved customer relations
D) Reduced shipping costs
Answer: B) Unauthorized purchases causing excessive inventory
Explanation: Without proper checks, a single clerk receiving inventory increases the risk of unauthorized or excessive orders.
Question 44
What is the importance of supervisory control?
A) It reduces shipping times
B) It ensures that managers control sales transactions for accuracy
C) It helps prevent fraudulent activities in procurement
D) It creates opportunities for reduced budgets
Answer: C) It helps prevent fraudulent activities in procurement
Explanation: Supervisory control is essential for preventing fraud in procurement by ensuring that all purchases are authorized.
Question 45
Which statement best describes the process of reconciliation in the revenue cycle?
A) Matching payments to customer invoices
B) Processing payroll
C) Reconciling vendor purchases
D) Verifying bank deposits
Answer: A) Matching payments to customer invoices
Explanation: In the revenue cycle, reconciliation involves matching customer payments to their respective invoices.
Question 46
Which file is associated with the process of collecting open invoices in the sales process?
A) Cash receipts journal
B) Vendor list
C) Customer ledger
D) Accounts payable
Answer: A) Cash receipts journal
Explanation: The cash receipts journal tracks payments made by customers toward open invoices.
Question 47
How does the general ledger system connect with other systems?
A) It collects inventory receipts
B) It provides detailed employee records
C) It summarizes transaction cycles that update master accounts
D) It controls procurement approvals
Answer: C) It summarizes transaction cycles that update master accounts
Explanation: The general ledger system collects summarized data from various transaction cycles to update the master accounts.
Question 48
What is one example of an internal control procedure used in payroll?
A) Requiring manual payroll entries
B) Segregation of duties between payroll and accounts payable
C) Allowing one person to handle payroll and cash disbursements
D) Permitting employees to process their own paychecks
Answer: B) Segregation of duties between payroll and accounts payable
Explanation: Segregating duties between payroll and accounts payable prevents fraud and errors in employee payment processing.
Question 49
What function does the payroll register serve?
A) Tracking inventory
B) Recording employee time worked
C) Summarizing gross pay, deductions, and net pay
D) Creating vendor invoices
Answer: C) Summarizing gross pay, deductions, and net pay
Explanation: The payroll register summarizes gross pay, deductions, and net pay for each employee, facilitating payroll processing.
Question 50
Which system does a company use to track the acquisition of fixed assets?
A) Inventory management system
B) Payroll system
C) Fixed asset system
D) Sales system
Answer: C) Fixed asset system
Explanation: The fixed asset system is responsible for tracking the acquisition, depreciation, and disposal of long-term assets like buildings and equipment.
