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Accounting Information Systems

10th Edition
Hall + 1 other
Publisher: Cengage Learning,
ISBN: 9781337619202

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BuyFindarrow_forward

Accounting Information Systems

10th Edition
Hall + 1 other
Publisher: Cengage Learning,
ISBN: 9781337619202
Chapter 5, Problem 1MCQ
Textbook Problem
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Which of the following statements is correct?

  1. a. The cash disbursement function is part of accounts payable.
  2. b. Cash disbursement is a treasury function.
  3. c. Cash disbursement is an independent accounting function.
  4. d. The cash disbursement function is part of the general ledger department.

To determine

Identify the true statement about the cash disbursement in the given options.

Explanation of Solution

Cash Disbursement System:

The cash disbursement system carries out the responsibility of processing the payments due by organization for the purchase transactions. The prime objective of the system is to provide accurate due payments and at the reliable time to the valid creditors only.

b.

The cash disbursement system prepares the checks for the authorized payments after the verification of documents. The checks prepared by the cash disbursement system may require the additional authorization from the designated authority which declares the cash disbursement as treasury function. Therefore, this option is correct.

a.

The cash disbursement and the accounts payable department are two different departments performing different tasks...

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Chapter 5 Solutions

Accounting Information Systems
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Ch. 5 - What is the purpose of the blind copy of a PO?Ch. 5 - Give one advantage of using a vouchers payable...Ch. 5 - What documents constitute the AP packet? What...Ch. 5 - In the basic technology system, the inventory...Ch. 5 - Discuss the importance of supervision controls in...Ch. 5 - The level of day-to-day department activity in...Ch. 5 - Discuss the following statement: even in advanced...Ch. 5 - What is central to a successful EDI...Ch. 5 - Discuss the objective of eliminating the receiving...Ch. 5 - What purpose does multilevel security control play...Ch. 5 - You are conducting an end-of-year audit. Assume...Ch. 5 - How does the general control area of systems...Ch. 5 - Which of the following statements is correct? a....Ch. 5 - Which of the following represents incompatible...Ch. 5 - Which document typically triggers the three-way...Ch. 5 - Which one of the following departments does not...Ch. 5 - Which control helps to ensure that the inventory...Ch. 5 - Which of the following expenditure cycle tasks...Ch. 5 - Which of the following describe incompatible...Ch. 5 - Which of the following tasks should the cash...Ch. 5 - Which ledger can be updated solely from the...Ch. 5 - Which of the following documents would most likely...Ch. 5 - INTERNAL CONTROLS AND RISK Review the following...Ch. 5 - INVENTORY ORDERING ALTERNATIVES The flowchart for...Ch. 5 - SYSTEM FLOWCHART ANALYSIS Using the flowchart...Ch. 5 - FLOWCHART ANALYSIS CONTROLS Refer to the system...Ch. 5 - RISK ANALYSIS AND INTERNAL CONTROL The following...Ch. 5 - PURCHASES SYSTEMRISKS AND CONTROLS Review the...Ch. 5 - IT CONTROLSCENTRALIZED SYSTEM Using the flowchart...Ch. 5 - PHYSICAL CONTROLS Using the flowchart of a...Ch. 5 - IT CONTROLSDISTRIBUTED SYSTEM Using the flowchart...Ch. 5 - INTERNAL CONTROL The following is a description of...Ch. 5 - ACCOUNTING DOCUMENTS Required Answer the following...Ch. 5 - UNRECORDED LIABILITIES You are auditing the...Ch. 5 - SMITHS MARKET (SMALL BUSINESS ACCOUNTING SYSTEM)...Ch. 5 - POSAVEK REMODELING AND BUILDING SUPPLY COMPANY...Ch. 5 - GREEN POND NURSERY (STANDALONE PC-BASED ACCOUNTING...Ch. 5 - CUSTOM FABRICATIONS INC. (STAND-ALONE PC-BASED...Ch. 5 - GENERATORS R US (CENTRALIZED SYSTEM WITH...Ch. 5 - OUTDOOR ADVENTURE: WHITE WATER AND CAMPING...Ch. 5 - CLASSIC RESTORATIONS (MANUAL AND STAND-ALONE...Ch. 5 - ARCHITECTS DEPOT (NETWORKED COMPUTER SYSTEM WITH...

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