11) A receiving report:
A) identifies the need for merchandise and begins the purchasing process.
B) identifies that the merchandise has been received and ends the purchasing process.
C) is sent by the purchasing department to the customer who purchases the item.
D) includes the invoice, receiving report, purchase order and purchase request.
12) Once the company receives the newly purchased inventory, it prepares a(n) ________ to list the goods received.
A) invoice
B) purchase approval form
C) receiving report
D) EFT transfer
13) A payment packet of documents:
A) reports the arrival of items purchased.
B) is sent by the purchasing department to the vendor selling the item.
C) identifies the need for merchandise and begins the purchasing process.
D) includes the invoice, receiving report and purchase order.
14) After approving an invoice for payment:
A) the receiving department should examine the payment packet to make sure all the documents agree.
B) after payment, the payment packet should be stamped "paid" by the person in the treasurer's department who has authorized the disbursement.
C) checks should be returned to the department who prepared them for mailing.
D) the person who ordered the goods should examine the payment package to make sure all the documents agree.
15) The entry to establish the petty cash fund is:
A) a debit to Miscellaneous Expense and a credit to Cash.
B) a debit to Miscellaneous Expense and a credit to Petty Cash.
C) a debit to Petty Cash and a credit to Cash.
D) a debit to Cash and a credit to Petty Cash.
16) A petty cash fund:
A) is established to pay large nonrecurring expenses.
B) is established to pay for minor purchases.
C) should have a least two custodians.
D) should issue checks for certain purchases.
17) Which of the following is a CORRECT statement about the petty cash fund?
A) To set up the petty cash fund, a check is issued to the chief financial officer.
B) The custodian of the fund has sole responsibility for accounting for the fund.
C) The cash in the fund must always equal the opening balance of the fund.
D) The petty cash fund must be maintained at a bank.
18) Payments by EFT are an important internal control for all of the following reasons EXCEPT for:
A) the EFTs provide a record of the payments.
B) the EFT must be authorized by an authorized official.
C) all EFT payments are made by the cashier in the Accounting Department.
D) before authorizing the EFT, the authorized official should study the evidence supporting the payment.
19) Seidner Store sells expensive watches. An inventory at the beginning of the day showed 40 watches in the store. 10 new watches were added to the inventory during the day. The point-of-sale terminal recorded 3 watches sold. An inventory taken at the end of the day should show how many watches still in the store?
A) 27
B) 47
C) 53
D) Cannot be determined from the data
20) An imprest petty cash fund of $600 was established for minor disbursements. At the end of the month, the fund included petty cash tickets for the purchase of $207 in supplies, $82 for meals, $86 for fuel, and $76 for taxi fare. How much cash should be left in the fund?
A) $108
B) $149
C) $451
D) $600