1. Which of the following describes a three-way match?

a. A three way match involves a purchase order, a purchase requisition, and an 
invoice.
b. When the invoice arrives, the AP clerk reconciles the financial information with the
receiving report and PO in the pending file.
c. A System that processes the payment of obligations created in the purchases system.
d. Identify liabilities due, prepare cash disbursement, update AP record

2. The purpose of the blind copy is to not force the receiving clerk to count and inspect
inventories prior to completing the receiving report. Answer: False

3. Which of the following is not included in the Cash Disbursement Procedures?

a. Identify Liabilities due
b. Update AP Records
c. Post to General Ledger
d. None of the above

4. The use of pre-numbered checks is an example of effective internal control over cash
disbursement. Answer: True

5. After the payroll checks are prepared and signed, they are sent to the _____ for review
and reconciliation with the payroll register.
a. Treasurer
b. Internal auditor
c. External auditor
d. Accounts payable clerk

6. The payroll department receives pay rate and withholding data from the personnel
department and hours-worked data from the production department. Answer: True

7. Which one of the following is not part of categories of tasks in the fixed asset system?

a. Asset acquisition
b. Asset supervision
c. Asset maintenance
d. Asset disposal

8. The depreciation of fixed assets used to manufacture products is treated as an expense

in the current period.
Answer: False

9. Which type of control is considered a compensating control?

a. segregation of duties
b. access control
c. supervision
d. accounting records

10. A mail room employee verifies the accuracy and completeness of the checks against the
prelist.
Answer: False