ACG 4401 FINAL EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS
The first step in a business 2 business sales transaction with an existing customer is -
ANS receipt of purchase of purchase order (i.e., Sales Order Entry)
Which department(s) should not have access to customers' checks/payments? -
ANS Accounts receivable/billing
Which department should have authorization in a sales order transaction? - ANS Credit
Which department(s) should have access/custody to a company's inventory assets? -
ANS Inventory control / shipping
Which of the following is the first step when choosing a vendor for the first time? -
ANS Requirement determination
Which function should the Purchasing department have in the expenditure cycle (i.e., what did I
say in the tips video this department had)? - ANS Authorization
What did I say when covering the slides was the biggest threat to the "approving invoice"
process? - ANS Fictitious invoices
Goods should be shipped to a customer after the bill (invoice) was sent. - ANS False
pg. 1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, The context DFD of the expenditure cycle indicates that a purchase order is sent to the vendor
who later sends an invoice to the customer. - ANS True
Failure to send a bill (invoice) is a threat in the expenditure cycle. - ANS False
According to the JOA article about Walmart's AI-powered store, which of the following
statements is FALSE? - ANS Walmarts AI powered store will be duplicated exactly in all 4800
stores across the US.
Which of the following expenditure cycle activities can be eliminated through the use of IT or
reengineering? - ANS Approving vendor invoices
In the revenue cycle, which department has the same function (i.e., authorization, record
keeping, and custody ) as Billing and A/R? - ANS General Ledger
Most costs are locked in at which stage in the production cycle? - ANS Product design
Which of the following represents a sales order process threat (the first process in an existing
business relationship)? - ANS Stockouts
In the JOA article "Billing Schemes, Part 1, Shell Companies... "why did Dennis (the internal
auditor) feel lucky at the end of the story? - ANS Because his company got most of the
money back.
Which if the following represents an appropriate control to prevent paying the same invoice
twice? - ANS Issuing checks only for complete voucher packages.
Which of the following is NOT a threat in the expenditure cycle relating to cash disbursements?
- ANS Inventory theft
pg. 2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
QUESTIONS AND ANSWERS 100% PASS
The first step in a business 2 business sales transaction with an existing customer is -
ANS receipt of purchase of purchase order (i.e., Sales Order Entry)
Which department(s) should not have access to customers' checks/payments? -
ANS Accounts receivable/billing
Which department should have authorization in a sales order transaction? - ANS Credit
Which department(s) should have access/custody to a company's inventory assets? -
ANS Inventory control / shipping
Which of the following is the first step when choosing a vendor for the first time? -
ANS Requirement determination
Which function should the Purchasing department have in the expenditure cycle (i.e., what did I
say in the tips video this department had)? - ANS Authorization
What did I say when covering the slides was the biggest threat to the "approving invoice"
process? - ANS Fictitious invoices
Goods should be shipped to a customer after the bill (invoice) was sent. - ANS False
pg. 1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, The context DFD of the expenditure cycle indicates that a purchase order is sent to the vendor
who later sends an invoice to the customer. - ANS True
Failure to send a bill (invoice) is a threat in the expenditure cycle. - ANS False
According to the JOA article about Walmart's AI-powered store, which of the following
statements is FALSE? - ANS Walmarts AI powered store will be duplicated exactly in all 4800
stores across the US.
Which of the following expenditure cycle activities can be eliminated through the use of IT or
reengineering? - ANS Approving vendor invoices
In the revenue cycle, which department has the same function (i.e., authorization, record
keeping, and custody ) as Billing and A/R? - ANS General Ledger
Most costs are locked in at which stage in the production cycle? - ANS Product design
Which of the following represents a sales order process threat (the first process in an existing
business relationship)? - ANS Stockouts
In the JOA article "Billing Schemes, Part 1, Shell Companies... "why did Dennis (the internal
auditor) feel lucky at the end of the story? - ANS Because his company got most of the
money back.
Which if the following represents an appropriate control to prevent paying the same invoice
twice? - ANS Issuing checks only for complete voucher packages.
Which of the following is NOT a threat in the expenditure cycle relating to cash disbursements?
- ANS Inventory theft
pg. 2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
