The inventory control clerk examines the inventory records for items that must be replenished and prepares a two-part purchase requisition. Copy 1 of the requisition is sent to the purchasing department and Copy 2 is filed.Upon receipt of the requisition, the purchasing clerk selects a supplier from the valid vendor file (reference file) and prepares a three-part purchase order. Copy 1 is sent to  the  supplier,  Copy  2  is  sent  to  the  accounts  payable  department  where  it  is  filed temporarily, and Copy 3 is filed in the purchases department.A  few  days  after  the  supplier  ships  the  order,  the  goods  arrive  at  the  receiving department.  They are inspected, and the receiving clerk prepares a three-part receiving report describing the number and quality of the items received. Copy 1 of the  receiving  report  accompanies  the  goods  to  the  warehouse,  where  they  are secured and the receiving report is filed. Copy 2 is sent to inventory control, where the clerk posts it to the inventory records and files the document.  Copy 3 is sent to the accounts payable department, where it is filed with the purchase order.A day or two later, the accounts payable (AP) clerk receives the supplier’s invoice (bill) for the items shipped. The clerk pulls the purchase order and receiving report from  the  temporary  file  and  compares  the  quantity  ordered, quantity  received,  and the  price  charged.  After reconciling the three documents,  the  clerk  enters  the purchase in the purchases journal and posts the amount owed to the accounts payable subsidiary account.On the payment due date, the AP clerk posts to the AP subsidiary account to remove the liability and prepares a voucher authorizing payment to the vendor. The voucher is then  sent  to  the  cash  disbursements  clerk.  Upon receipt of  the  voucher,  the  cash disbursements clerk prepares a check and sends it to the supplier. The clerk records the check in the check register and files a copy of the check in the department filing cabinet.

In the revenue and receipts cycle, a new customer wishes to purchase inventory on credit, at your shop. Select the first step that you will insist should be followed by your staff. a.Request a valid purchase order from the customer before processing the order.b.Create a correct purchase order, signed by the customer.c.Request that a credit application form be completed by the customer.d.Set up an accounts receivable account for the customer in the accounts receivable ledger.

Select the alternative that best describes a REQUISITION DOCUMENT used in the acquisitions and payments cycle.a.This document is completed by the buying department and sets out the details and prices of the goods to be purchased. b.This document is issued by the warehouse to convey to the buying department that goods are required.c.This document is completed by the purchasing company when the goods are delivered by the supplier.d.This document is made out by the supplier and details the goods which are supplied and it has to be signed by the purchasing company to acknowledge receipt of the goods

All of the following departments have a copy of the purchase order exceptSelect one:a.the receiving departmentb.accounts payablec.general ledgerd.the purchasing department

An audit program for inventory includes the following procedure:“Test count a sample of physical inventory and agree to management’s count records.”"Observe the arrangements of the client's management before the inventory count."&nbsp;"Select goods received notes for a few days before the count date and confirm that they are recorded and existed as "goods in" in inventory records. The corresponding goods should be included in the purchase in trade payables.""Obtain written representations concerning the completeness and accuracy of the physical count and valuation."Which of the above procedure is not included at the time of attending the physical stock take.<br /> A. a. 2 <br />B. b. 4 <br />C. c. 3 <br />D. d. 1

This system of recording goods intended for sale maintains the merchandise inventory account in every transactionGroup of answer choicesPeriodic inventoryPerpetual inventoryJust-in-time inventoryMaintenance inventory