WGU D217 ACCOUNTING INFORMATION SYSTEMS EXAM QUESTIONS AND ANSWERS (VERIFIED)WITH RATIONALES UPDATED2024

A copy of the purchase order (PO) is sent to the - ANSWERS,A copy of the purchase order (PO) is sent to the vendor. The purchase order is the formal document that tells the vendor what material is needed, at what price, in what quantity and on what date. The departments involved in the purchasing process are purchasing, receiving, inventory control and - ANSWERS,The departments involved in the purchasing process are purchasing, receiving, inventory control and accounts payable. Accounts payable completes the purchasing process by authorizing and executing the cash disbursement based on a signal from receiving or inventory control. When a cash disbursement in payment of an accounts payable is recorded - ANSWERS,When a cash disbursement in payment of an accounts payable is recorded the liability account is decreased. On the Balance Sheet, accounts payable is a current liability. When a cash disbursement is recorded, the liability will be reduced. The greatest risk of misappropriation of funds occurs in - ANSWERS,The greatest risk of misappropriation of funds occurs in accounts payable. This may take the form of payments for goods not ordered or received and to vendors that do not exist. The risk can be reduced through supervision, segregation of duties, independent verification, or automated processes. In a firm with proper segregation of duties, adequate supervision as a compensating control is still necessary in - ANSWERS,In a firm with proper segregation of duties, adequate supervision is most critical in receiving. Every day materials arrive on the receiving dock. Until those receipts are recorded in the system, they are invisible to anyone but the receivers and their supervisors. Supervision is a compensating control appropriate before more automated controls take effect. Scanning technology and automated three-way match are technological controls that reduce risk. The fixed asset system records the - ANSWERS,The fixed asset system records the purchase of a new plant. The fixed asset system records property, plant, and equipment used in the operation of the business. These represent the largest investments of the firm. In a technology enabled payroll system, Personnel, Time Keeping, Payroll, and Accounts Payable connect to which department to pay employees? - ANSWERS,In a technology-enabled payroll system, Personnel, Time Keeping, Payroll and Accounts Payable connect to cash disbursements to pay employees. Personnel inputs the basic employee information and rate of pay; Time Keeping collects hours worked and verifies time cards; Payroll inputs the hours worked into the payroll system which calculates gross and net pay, taxes, and other deductions; Accounts Payable approves the payment amount; and finally cash disbursements issues pay checks or direct deposit. The general ledger will be updated after the cash disbursement occurs