Question 1

__________________________________________________ are B2B systems that combine e-invoicing and e-payment processes to send invoices to electronic invoices to customers and to receive electronic payments.

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The answer of __________________________________________________ are B2B systems that combine e-invoicing...

Question 2

In a relational table for PURCHASE_RECEIPTS, the primary key would be the ___________________________________.

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The answer of In a relational table for PURCHASE_RECEIPTS, the...

Question 3

The ______________________________ master data store is a repository of all unpaid vendor invoices.

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The answer of The ______________________________ master data store is a...

Question 4

The ___________________________________ data shows, in chronological sequence, the details of each cash payment made.

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The answer of The ___________________________________ data shows, in chronological sequence,...

Question 5

Below is a narrative for the "Make payment" portion (bubble 2.0) of the accounts payable/cash disbursements process described in Chapter 13.Narrative Description
The payment process begins with the preparation of a list of payments that might be made at this time (bubble 2.1).The selection of items for this list is based on payment due dates and terms that may indicate a discount can be taken for a payment at this time.The proposed list is reviewed and amended (bubble 2.2) to add additional invoices that are not due for payment yet but that can be consolidated with other payments being made to a vendor.Proposed payments may be removed from the list if there are insufficient funds or if payments to a vendor are on hold.Bubble 2.3 depicts the process of preparing the disbursement, which is equal to the amount of the invoice less any discount taken.The payment is recorded by:
-Marking the invoice as paid on the accounts payable master data.-Making an entry in the cash disbursements event data store.-Sending payment data to the general ledger where an entry is made to reflect the payment..Required:
From the DFD (TB Figure 13.5) and the narrative description above, explode bubble 2.0 into a lower-level diagram showing the details of that process.

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The answer of Below is a narrative for the "Make...

Question 6

Below is a narrative of the "Establish payable" portion (bubble 1.0) of the AP/CD process described in Chapter 13.Narrative Description
The first step in establishing the payable involves validating the vendor invoice.This process is triggered by receipt of the vendor invoice.Process 1.1 comprises a number of steps.First, the vendor invoice is matched against vendor master data to determine that the invoice is from an authorized vendor.Next, the vendor invoice is compared against the PO data (see the flow PO accounts payable notification) to make sure that there is a PO (i.e., there is an authorized purchase) and that the invoiced items, quantities, and prices conform to the PO.Then, the invoice is matched against the receiving report data to determine that the items and quantities have been received.Finally, the invoice is checked for accuracy of terms, computed discounts, extensions, and total amount due.Note that the vendor master data is updated at this point to reflect purchase history data.If the data items do not agree, the invoice is rejected, and follow-up procedures are initiated (see the reject stub emanating from bubble 1.1).If the data items agree, the invoice is approved, and the validated invoice is sent on to the next step to be used to record the payable.Bubble 1.2 depicts the process of recording the payable in the purchase events data and accounts payable master data.A payable is recognized and recorded by:
-Creating a record in the purchase events data store.-Creating a record in the accounts payable master data to reflect an open invoice-a payment due to a vendor.-Updating the inventory master data for the cost of the items received.- Notifying the general ledger of the amount of the payable that was recorded (see the data flow "GL payable update").Required:
From the DFD (TB Figure 13.3) and the narrative description above, explode bubble 1.0 into a lower-level diagram showing the details of that process.

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The answer of Below is a narrative of the "Establish...

Question 7

The figure below shows a portion of the horizontal perspective of an accounts payable/cash disbursements (AP/CD) process.The following functional titles (for the AP/CD process organizational structures and the entities with which the AP/CD process interacts) and information flows, depicted as documents, generated or captured by the AP/CD process, have been omitted.  Required: Complete TB Figure 13.1 by inserting the letter corresponding to the:
(a) functional titles into the boxes
(b) information flow descriptions in the document symbols

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The answer of The figure below shows a portion of...

Question 8

The control plan ___________________________________ includes an aging of open vouchers / accounts payable records that is produced and reviewed on a regular basis in order to ensure that there is an adequate cash reserve to make required payments

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The answer of The control plan ___________________________________ includes an aging...

Question 9

To ensure that a vendor invoice is recorded accurately and that items on the invoice were ordered and received requires that we __________________________________________________.

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The answer of To ensure that a vendor invoice is...

Question 10

An organization should ___________________________________ by matching records of cash disbursements to bank records to ensure that all disbursements actually made by the bank were authorized and accurate.

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The answer of An organization should ___________________________________ by matching records...

Question 11

The AP process that uses vendor invoices for inputs updates the ______________________________ master data.

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The answer of The AP process that uses vendor invoices...

Question 12

In the ER diagram for AP/CD process, PURCHASE_REQUISITIONS generate ___________________________________.

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The answer of In the ER diagram for AP/CD process,...

Question 13

Input validity for ______________________________ is ensured by making sure that those that bill the company are doing so for goods that were actually ordered and actually received.

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The answer of Input validity for ______________________________ is ensured by...

Question 14

In the ER diagram of the AP/CD process, VALID_INVOICES are received from the ____________________.

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The answer of In the ER diagram of the AP/CD...

Question 15

The cash disbursements process uses ______________________________ as inputs to update the accounts payable master data.

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The answer of The cash disbursements process uses ______________________________ as...

Question 16

To ensure that only authorized payments are made, there should be ____________________________ whereby the accounts payable records on which the payment is based are created by an entity other than the entity that executes the payment.

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The answer of To ensure that only authorized payments are...

Question 17

In a relational table for VALID_INVOICES, the primary key would be the ______________________________.

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The answer of In a relational table for VALID_INVOICES, the...

Question 18

The control plan _____________________________________________ requires that the authority for recording a vendor invoice come from the purchase order and receiving report that were created by entities other than the one that records the vendor invoice.

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The answer of The control plan _____________________________________________ requires that the...

Question 19

______________________________ is a process by which an organization pays for a purchase on the basis of the receipt of the goods.

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The answer of ______________________________ is a process by which an...

Question 20

Fraud abuses in the AP/CD process usually entail creating ______________________________ or submitting fictitious invoices.

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The answer of Fraud abuses in the AP/CD process usually...

Quiz 13: Accounts Payablecash Disbursements Apcd Process