ACCT 307 Sale vs. Purchase Orders

Which process has “Timely and efficient cash collection” as its primary objective?

Sales

Which process has “Minimize the cost of acquiring and maintaining inventories” as its primary objective?

Purchase

Which process includes maintaining customer records as an objective?

Sales

Which process includes processing revenue as an objective?

Sales

Which process includes forecasting inflows as an objective?

Sales

Which process includes maintaining vendor records as an objective?

Purchase

Which process includes inventory control as an objective?

Purchase

Which process includes forecasting outflows as an objective?

Purchase

Which of the following is a Sales process event?

Sales order

Which process includes Shipment as an event?

Sales

Which event represents money being received from a customer?

Payment from customer

Which process includes a Purchase request as an event?

Purchase

A Purchase order is an event in which process?

Purchase

Which event occurs when goods are received in the Purchase process?

Receipt of goods

Which event involves paying the vendor?

Payment to the vendor

Which of the following is an input to the Sales process?

Sales order

Which document is an input associated with the Sales process?

Sales invoice

A Shipping Notice appears as an input for:

Both sales and purchases

Which document is listed as an input for both Sales and Purchase?

Bill of lading

Which of the following is an input to the Sales process?

Remittance device

A Debit/credit memo appears as an input for:

Both sales and purchase

Which process uses a Purchase requisition as an input?

Purchase

Which process has Purchase order listed as an input?

Purchase

Which document is an input to the Purchase process?

Vendor invoice

Which process has a Vendor listing as an input?

Purchase

Which process uses a Receiving report as an input?

Purchase

Which output appears in the provided tables?

Financial statement information

Which output is associated with the Sales process?

Customer billing statement

Which report is an output of the Sales process?

A/R aging report

Which report is listed as a Sales process output?

Bad debt report

Which output is associated with the Sales process?

Cash receipts forecasts

Which of the following is an output of the Sales process?

Approved customer listing

Which report is associated with the Sales process?

Sales analysis report

Which output is associated with the Purchase process?

Vendor checks and check register

Which output belongs to the Purchase process?

Discrepancy reports

Which forecast is an output of the Purchase process?

Cash requirements forecast

Which report is associated with the Purchase process?

Purchases analysis reports

The sales process begins with:

A customer order for goods or services

An important input to the sales process is:

A customer sales order

Which of the following is not an objective of the sales process?

Controlling inventory

Which of the following is not an objective of the purchasing process?

Fastest possible processing of payments to vendors

Which source document is used to request goods?

Purchase requisition

All of the following are inputs (source documents) to the purchasing process except:

All of the above are source documents to the purchasing process

Which of the following statements best describes business process outsourcing?

A company focuses on its core business processes and contracts with another firm to do the other processes