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1. The expenditure cycle consists of all of the

following activities, except:
A. Purchase transactions
B. Cash disbursement transactions
C. Sales transactions
D. Purchase adjustments

C. Sales transactions
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2. This analytical procedure calculates the average
number of days it takes to retire accounts payables.
A. Current ratio
B. Quick ratio
C. Cost of Goods Sold to Accounts Payable
D. Accounts Payable Turn Days

D. Accounts Payable Turn Days
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3. This item is a written offer from the purchasing
department to a vendor or supplier to purchase
goods or services specified in the order.
A. Purchase requisition
B. Purchase order
C. Receiving report
D. Receiving file

B. Purchase order
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4. This function of processing of purchase transaction
includes placing vendors on an authorized vendor
list and preparing purchase orders.
A. Initiating purchases
B. Receipt of goods and services
C. Recording liabilities
D. Paying liabilities

A. Initiating purchases
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5. This record is a report of total checks issued
in a batch or during a day.
A. Check
B. Check summary
C. Cash disbursements transaction file
D. Check register

B. Check summary
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7. These items include all checks issued or
vouchers paid after the balance sheet date.
A. Purchase return cutoff tests
B. Check summary
C. Subsequent payments
D. Confirmation of accounts payable

C. Subsequent payments
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1. This analytical procedure commonly used in the
audit of the production cycle is useful in measuring
the effectiveness of the manufacturing process.
A. Inventory Turn Days
B. Inventory Growth to Cost of Sales Growth
C. Finished Goods Produced to Direct Labor
D. Product Defects per Million

D. Product Defects per Million
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2. This document is a record of time worked by
an employee on a specific job.
A. Production order
B. Time ticket
C. Move ticket
D. Standard cost master file

B. Time ticket
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3. All of the following are functions of the
manufacturing process, except:
A. Initiating production
B. Initiating purchases
C. Production of inventory
D. Recording manufacturing and inventory
transactions

B. Initiating purchases
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4. This analytical procedure commonly used in the
audit of the personnel services cycle may be a
measure of productivity per employee.
A. Average payroll cost per employee classification
B. Revenue per employee
C. Total payroll as a percentage of revenues
D. Payroll tax expense as a percentage of gross payroll

B. Revenue per employee
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5. This record holds all pertinent employment
data for each employee.
A. Payroll register
B. Payroll tax returns
C. Employee earnings master file
D. Employee personnel file

D. Employee personnel file
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6. This report shows each employees name,
gross earnings, payroll deductions, and net
pay for a period.
A. Clock Card
B. Time Ticket
C. Payroll Register
D. Payroll Check

C. Payroll Register