Chapter 13 Accounts Payable Cash Disbursements Process TRUE FALSE 1 The cashier is responsible for processing vendor invoices preparing payment vouchers and recording purchase and disbursement transactions 2 The notification of an obligation to pay a vendor for merchandise that was ordered and received is known as a purchase order 3 A true voucher system requires that all expenditures for whatever purpose and in excess of a certain dollar amount be formally approved for payment and be recorded as a payable before they can be paid 4 The vendor invoice master data is a repository of all unpaid vendor invoices 5 The AP CD process is an interacting structure of people equipment methods and controls that is designed to accomplish the handling of repetitive work routines of the AP department and the cashier support their decision needs and assist in the preparation of internal and external reports 6 The cashier usually reports to the controller 7 The VP of finance usually has the cashier and the controller directly reporting to him her 8 When it is time to make a payment an approved voucher is sent to the accounts payable department 9 The level 0 diagram of the AP CD Process contains the two process bubbles of establish payable and ANS F ANS F ANS F ANS F ANS T ANS F ANS F ANS F approve checks ANS F ANS T 10 When the vendor payment is made the general ledger is updated for the cash disbursement 11 The vendor invoice triggers the establish payable process 12 The vendor sends a confirmation to establish the payable 13 A disbursement voucher is designed to reflect formal approval of the voucher for payment and to provide such added data as the account distribution and the amounts to be debited 14 The purchase order triggers the make payment process 15 Within the make payment process the three subprocesses are Prepare proposed payments Select and record payments and Issue and record disbursements 16 The trigger for either a true voucher process or a non voucher process is a payment request 17 The cash disbursements data shows in alphabetical order the details of each cash payment made 18 In the ER diagram for AP CD process PURCHASE REQUISITIONS generate PURCHASE ORDERS 19 In the ER diagram of the AP CD process VALID INVOICES are received from the purchasing department 20 In a relational table for PURCHASE RECEIPTS the primary key would be the receipt number 21 In a relational table for VALID INVOICES the primary key would be the vendor number 22 In the flowchart for the AP DC process the symbol below represents the enterprise database ANS T ANS F ANS T ANS F ANS T ANS T ANS F ANS T ANS F ANS T ANS F ANS T 23 Fraud abuses in the AP CD process usually entail creating phony customers or submitting fictitious 24 The often missing control plan of cash planning report includes an aging of open AP records that is produced and reviewed on a regular basis in order to ensure that there is an adequate cash reserve to make required payments 25 Input accuracy for vendor invoice is ensured by making sure that those that bill the company are doing so for goods that were actually ordered and actually received 26 The AP process that uses vendor invoices for outputs updates the inventory master data 27 The cash disbursements process uses payment vouchers as inputs to update the accounts payable invoices ANS F ANS T ANS F ANS F master data ANS T MULTIPLE CHOICE 1 The typical accounts payable cash disbursements process would capture and record data related to the day to day operations of all of the following departments except a b c d shipping cashier receiving activities for all of the above are captured and recorded by the AP CD process 2 Which of the following is least likely to report either directly or indirectly to the vice president of ANS A finance a b c d controller treasurer shipping department supervisor accounts payable department ANS C accounts payable department manager cashier a b c purchasing department manager receiving department manager d ANS A 3 Which of the following managers is most likely to report to the controller 4 The typical horizontal flows of information in a accounts payable cash disbursements process might include all of the following except a b c d an invoice is received from a vendor the paid voucher is sent to the accounts payable department an approved disbursement voucher is sent to the cashier a copy of a receiving report is sent to the cashier ANS D 5 Which of the following process bubbles would you not expect to see in the logical DFD for a accounts requisition inventory establish payable payable cash disbursements process a b c make payment d none of the above ANS A 6 7 ANS A ANS D ANS D ANS C In an accounts payable cash disbursements process a process establish payable would normally would be triggered by a vendor invoice b c d a purchase order a copy of the purchase order sent to the inventory process a vendor acknowledgment In an accounts payable cash disbursements process a process make payment normally would be triggered by the data flow a purchase order b vendor acknowledgment c vendor packing slip d payment due date information 8 At the time that an accounts payable cash disbursements process makes payment for goods or services the process generally follows which order Assume here that you prepare the check a select and record payments prepare proposed payments issue and record disbursements b prepare proposed payments issue and record disbursements select and record payments issue and record disbursements select and record payments prepare proposed payments c d prepare proposed payments select and record payments issue and record disbursements 9 When the accounts payable cash disbursements process records a payable obligation the data flow between validate invoice and record payable is a GL payable update b PO AP notification c validated vendor invoice d receiving report 10 In the level 0 DFD for an accounts payable cash disbursements process a data flow called vendor invoice most likely would be sent by the vendor to which of the following processes 11 In the level 0 DFD for an accounts payable cash disbursements process a data flow called receiving report most likely would be sent by the purchasing process to which of the following processes a order inventory b c d make payment receive goods and services establish payable 12 Data flows of an accounts payable cash disbursements process normally might include all of the 14 Which of the following is designed