AIS MCQ ch5

žThe purchasing system:

• žFirst by the inventory department : after deplete the inventories and drop to a predetermined reorder point the clerk prepared a purchased requisition .
• Second by purchasing Dep. : after receiving a purchasing requisition the clerk prepared purchasing order .
• žThen the receiving Dep . Receive a blind copy of PO from the purchasing Dep. , when the inventories received the clerk check them and prepared the receiving report . žWhen the supplier ’s invoice arrived the AP Dep. Record the liability .
• žFinally ,post the accounts to General Ledger after receive a journal voucher from AP Dep . And the account summary from inventory control .

žTHE CASH DISBURSEMENT SYSTEM

• Each day , the AP function Reviews the open AP files for such items and sends payment approval in form of a voucher packet (authorizing invoice ) to cash disbursement .
• The cash disbursement clerk receives the voucher packet and reviews the documents for completeness and clerical accuracy ,then the clerk prepare a check register (include check no. , dollar amount , voucher no. ) .
• THEN update the AP record
  • finally post to the general ledger . P.243

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žThe purchasing dep. Prepare the PO when the purchase requisition come from the inventory dep. žCopies of PO sent for

1. vendor
2. AP dep.
3. blind copy sent for receiving dep.
4. copy field in open PO file .

• žBlind copy : is a copy of PO without any information about Quantity and price , to force the receiving clerk to count and inspect the received inventories before complete the receiving report .

1. Which document helps to ensure that the receiving clerks actually count the number of goods received?

1. žpacking list
2. žblind copy of purchase order
3. žshipping notice
4. žinvoice

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• žAfter completion the physical count and inspection the goods , the receiving clerk prepare the receiving report .
• žOne copy of Receiving Report sent to inventories dep. , to update the inventory record , depending on method of a standard cost system which carry inventories at a predetermined standard value regardless the actual price paid to the vendor ,the value posting to the standard cost inventory ledger .

žTo update the inventory ledger and AP ledger we need the supplies invoice .

župdate the general ledger when receives journal voucher from AP dep. And account summary from inventory control .