Expenditure/Disbursements Flashcards Preview

4-Internal Control-Transaction Cycle > Expenditure/Disbursements > Flashcards

Flashcards in Expenditure/Disbursements Deck (5)
Loading flashcards...
1
Q

Purchasing activities in a transaction cycle

A

purchase request received

prepare the Purchase order
receiving report
suppliers invoice-billing

record in purchases journal

post to the general ledger accounts

2
Q

disbursement activities in a transaction cycle

A

prepare check and remittance advice

record payment in the cash disbursement journal

post cash payments to the general ledger

3
Q

difference between accounts payable and voucher payable systems

A

accounts payable- obligations are summarized by the specific suppliers involved (can identify the total owed to each supplier)

Voucher Payable-obligations are tracked by individual transactions without summarizing them by the specific suppliers involved.

4
Q

objectives of internal control over purchases and AP

A

goods and services are obtained by management authorization and based on approved orders

goods/services accounted for on a timely basis

adjustments based on manager approval

authorized payments of goods/services

5
Q

objective of internal control over cash disbursements

A
recorded in proper amounts
authorized by management
periodic comparisons are made 
cash and disbursement records are made by certain personnel
adjusting entry managements approval