PBL Session 2: Expenditure Cycle! Quiz

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Questions: 10 | Attempts: 297 | Updated: Mar 22, 2023

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PBL Session 2: Expenditure Cycle! Quiz - Quiz

Are you familiar with the expenditure cycle? Would you like to try this quiz? The expenditure cycle is the set of activities that pertain to the procurement of and payment for goods and services. Activities include determining what needs to be purchased, the receipt of goods and payments to suppliers, and a set of decisions and actions. Test your knowledge of the expenditure cycle.

Questions and Answers

1.

What document is not used in the Purchasing system?
- A.
  
  Purchase Requisition
- B.
  
  Purchase Order
- C.
  
  Sales Order
- D.
  
  Receiving Report
Correct Answer
C. Sales Order

Explanation
In a purchasing system, a sales order is not used. A sales order is a document used in the sales process to record the customer's request for goods or services. It is not relevant to the purchasing system, which focuses on acquiring goods or services from suppliers. The other options, such as purchase requisition, purchase order, and receiving report, are all documents commonly used in the purchasing system to initiate, track, and record the procurement process.

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2.

What document is this? Do you know? Are you sure?
- A.
  
  Debit memo
- B.
  
  Cheque
- C.
  
  Invoice
- D.
  
  Purchase Order
Correct Answer
D. Purchase Order

Explanation
The document being referred to in the question is a purchase order. A purchase order is a document issued by a buyer to a seller, indicating the types, quantities, and agreed prices for products or services that the buyer wishes to purchase. It serves as a legally binding contract between the buyer and the seller and provides detailed information about the items to be purchased.

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3.

This is a ______________________.
- A.
  
  Supplier Invoice
- B.
  
  Purchase Order
- C.
  
  Receiving Report
- D.
  
  Purchase Requisition
Correct Answer
C. Receiving Report

Explanation
A receiving report is a document that is used to record the receipt of goods or services from a supplier. It typically includes information such as the date of receipt, the quantity received, and any discrepancies or damages noted. This document is important for the accounting and inventory management processes as it provides evidence of the goods received and allows for proper verification and reconciliation of invoices and purchase orders.

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4.

Now, do you know what this is?
- A.
  
  Receiving Report
- B.
  
  Purchase Requisition
- C.
  
  Purchase Order
- D.
  
  Supplier Invoice
Correct Answer
B. Purchase Requisition

Explanation
A purchase requisition is a document that is used by an employee to request the purchase of goods or services for the company. It outlines the details of the requested purchase, including the item description, quantity, and estimated cost. The purchase requisition is then submitted to the appropriate department or individual for approval before a purchase order is created. This document helps to ensure that all purchases are properly authorized and accounted for.

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5.

Time for a harder question, what is the purpose of a purchase requisition?
- A.
  
  Identifies the requisitioner; specifies the delivery location and date needed; identifies the item numbers, descriptions, quantity, and price of each item requested; and may suggest a supplier.
- B.
  
  Document form that formally requests a supplier to sell and deliver specified products at designated prices.
- C.
  
  Document that indicates items have been formally received.
Correct Answer
A. Identifies the requisitioner; specifies the delivery location and date needed; identifies the item numbers, descriptions, quantity, and price of each item requested; and may suggest a supplier.

Explanation
answer can be found on page 443 (text book)

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6.

A debit memo is used to:
- A.
  
  Indicate items have been formally received.
- B.
  
  Records the adjustments being requested when there is a case of damaged or poor quality goods.
- C.
  
  Write an order to a bank to pay the amount specified from funds on deposit
Correct Answer
B. Records the adjustments being requested when there is a case of damaged or poor quality goods.

Explanation
page 448

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7.

How many copies of purchase requisition forms does Northern Manufacturing Co make?
- A.
  
  2
- B.
  
  3
- C.
  
  4
Correct Answer
B. 3

Explanation
Northern Manufacturing Co makes three copies of purchase requisition forms.

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8.

A voucher package consists of a vendor invoice and supporting documentation (purchase order and receiving report).
- A.
  
  True
- B.
  
  False
- C.
  
  I have no idea
Correct Answer
A. True

Explanation
page 450

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9.

What is a purchase order?
- A.
  
  A document that identifies the requisitioner; specifies the delivery location and date needed
- B.
  
  A document that formally requests a supplier to sell and deliver specified products at designated prices.
- C.
  
  A document that indicates items have been formally received.
Correct Answer
B. A document that formally requests a supplier to sell and deliver specified products at designated prices.

Explanation
page 445

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10.

What happens at the shipping department?
- A.
  
  Absolutely nothing
- B.
  
  Orders are made
- C.
  
  Shipment are blind counted, inspected and recorded
Correct Answer
C. Shipment are blind counted, inspected and recorded

Explanation
At the shipping department, shipments are blind counted, inspected, and recorded. This means that the department receives the items to be shipped, counts them without knowing the exact quantity, inspects them for any damages or discrepancies, and then records the details of the shipment. This process ensures that the correct number of items are being shipped and that they are in good condition before being sent out.

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