FIS Multiple Choice Practice Questions: Fire Inspection and
Safety Review
A - correct answer ✔✔Which of the following is a control document for cash receipts?
a. Remittance advice
b. Credit memorandum
c. FOB
d. Picking list
C - correct answer ✔✔2Which of the following is not true regarding the balance forward
method of accounting for accounts receivable?
a. Payments are applied to the outstanding balance rather than to particular invoices.
b. No attempt is made to match individual payments and invoices.
c. Invoice records remain in the open invoice file until payment is received.
d. The open invoice file is archived at the end of the period.
C - correct answer ✔✔If a customer's payment is delayed for an excessive period of time, what
is the appropriate notice to be sent?
a. An invoice
b. A statement
c. A dun
d. A discount
C - correct answer ✔✔Why are audit trails for the purchasing process somewhat more
complicated than thosefor the revenue process?
a. The revenue process involves the revenue recognition principle.
,b. The purchasing process usually includes only a single journal entry and, therefore, provides
inadequate support.
c. The purchasing process may involve two journal entries often made at difference times.
d. The revenue process is vulnerable to errors when posting from the cash receipts journal.
A - correct answer ✔✔Which of the following initiates a bidding situation among suppliers? a.
Request for quotation; request for proposal
b. Request for bid response; request for quotation
c. Request for deliverables; request for quotation
d. Request for proposal; request for bid response
B - correct answer ✔✔After an organization compares the vendor invoice with the purchase
order data and the receiving data, the invoice data are then keyed into what file?
a. Purchase order file
b. Open invoice file
c. Accounts payable file
d. Receiving transaction file
CC - correct answer ✔✔What report is essential to organizations using "just in time" operations
to minimize inventory?
a. Excess inventory report
b. Returns and allowances report
c. Inventory and PO aging report
d. Order recommendation report
D - correct answer ✔✔Which of the following is not a common inventory problem for
mercantile organizations?
a. Maintaining an economic level of inventory on hand
, b. Avoiding obsolete inventory
c. Managing a selection of products to achieve satisfactory profitability
d. Determining the lead time for products
D - correct answer ✔✔Which of the following files is not owned by the account receivable
application in a conventional accounting system?
a. Open customer invoice file
b. Customer master file
c. Cash receipts transaction file
d. Vendor master file
C - correct answer ✔✔In accounting software packages, what is the equivalent term for
accounts in a subsidiary ledger?
a. Master accounts
b. Modules
c. Sub-accounts
d. Normal accounts
D - correct answer ✔✔A processing feature unique to the general ledger module is one that
allows the altering of recorded transactions if they have not been permanently posted. What is
the feature called?
a. Provisional posting
b. Pencil posting
c. Ink posting
d. Both A and B
Safety Review
A - correct answer ✔✔Which of the following is a control document for cash receipts?
a. Remittance advice
b. Credit memorandum
c. FOB
d. Picking list
C - correct answer ✔✔2Which of the following is not true regarding the balance forward
method of accounting for accounts receivable?
a. Payments are applied to the outstanding balance rather than to particular invoices.
b. No attempt is made to match individual payments and invoices.
c. Invoice records remain in the open invoice file until payment is received.
d. The open invoice file is archived at the end of the period.
C - correct answer ✔✔If a customer's payment is delayed for an excessive period of time, what
is the appropriate notice to be sent?
a. An invoice
b. A statement
c. A dun
d. A discount
C - correct answer ✔✔Why are audit trails for the purchasing process somewhat more
complicated than thosefor the revenue process?
a. The revenue process involves the revenue recognition principle.
,b. The purchasing process usually includes only a single journal entry and, therefore, provides
inadequate support.
c. The purchasing process may involve two journal entries often made at difference times.
d. The revenue process is vulnerable to errors when posting from the cash receipts journal.
A - correct answer ✔✔Which of the following initiates a bidding situation among suppliers? a.
Request for quotation; request for proposal
b. Request for bid response; request for quotation
c. Request for deliverables; request for quotation
d. Request for proposal; request for bid response
B - correct answer ✔✔After an organization compares the vendor invoice with the purchase
order data and the receiving data, the invoice data are then keyed into what file?
a. Purchase order file
b. Open invoice file
c. Accounts payable file
d. Receiving transaction file
CC - correct answer ✔✔What report is essential to organizations using "just in time" operations
to minimize inventory?
a. Excess inventory report
b. Returns and allowances report
c. Inventory and PO aging report
d. Order recommendation report
D - correct answer ✔✔Which of the following is not a common inventory problem for
mercantile organizations?
a. Maintaining an economic level of inventory on hand
, b. Avoiding obsolete inventory
c. Managing a selection of products to achieve satisfactory profitability
d. Determining the lead time for products
D - correct answer ✔✔Which of the following files is not owned by the account receivable
application in a conventional accounting system?
a. Open customer invoice file
b. Customer master file
c. Cash receipts transaction file
d. Vendor master file
C - correct answer ✔✔In accounting software packages, what is the equivalent term for
accounts in a subsidiary ledger?
a. Master accounts
b. Modules
c. Sub-accounts
d. Normal accounts
D - correct answer ✔✔A processing feature unique to the general ledger module is one that
allows the altering of recorded transactions if they have not been permanently posted. What is
the feature called?
a. Provisional posting
b. Pencil posting
c. Ink posting
d. Both A and B
