LUCY COLLEGE
DIRE DAWA COMPAS
NAME: _________________________________________________ ID No _______________
1. A document sent from a purchaser to a vendor that authorizes a purchase:
A. Receiving report C. Three-way match
B. Vendor Invoice D. Purchase order.
2. ______ Match the total amounts on the invoice to the total amounts on the purchase order.
A. Invoice totals matching C. Three-way matching
B. Two-way matching D. Charges matching
3. Vendor invoices are often based:
A. on product receipts C. Price of products
B. On purchase orders D. Charges invoices
4. Which of the following vendor invoices take place without purchase orders or receiving
reports:
A. Monthly rent for a storage facility C. Equipment leases
B. Automobile payments D. All
5. After the invoice is verified and approved, the amount will be to the company's :
A. Credit Accounts Payable account and debited to an expense or asset.
B. Debit Accounts receivable account and credit to an revenue or liability.
C. Debit to cash and credit to expense
D. None
6. A common technique for verifying a vendor invoice is:
A. The three-way match C. Charges matching
B. The two-way match D. Purchase orders
7. Which of the is not required to process payment against a two-way match
A. Purchase orders C. Invoices reports
B. Receiving reports D. None
8. Buy Birr 5,000 worth of equipment ON January 1, 2018 with the credit terms 2/10 , n/45.
Compute paid amount, if paid with discount period.
A. ETB 100 C. ETB 4,000
B. ETB 4,900 D. ETB 1,000
9. Compute paid amount, if paid on January 15, 2018.
A. ETB 3,950 C. ETB 5,000
B. ETB 4,900 D. ETB 6,050
10. Compute paid amount, if paid on February 28, 2018.
A. ETB 3,950 C. ETB 5,000
B. ETB 4,900 D. ETB 6,050
11. All of the following are included in supporting documents except_________
A. Cheque requisitions C. Receipts
B. Invoices D. None
12. Payments coded and allocating to accounts may includes:
A. Cost centre’s C. Service or product allocation
B. Organization chart of account D. All
13. Which of the following is/are not included in organizational policy and procedures
A. Computers system documentation C. Operational manual
B. Internal control guidelines D. Cost centres
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Part 2: Easy
1. Write the three-way match comparing information:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
2. Why do companies use purchase orders?
a. _____________________________________________
b. _____________________________________________
c. _____________________________________________
d. _____________________________________________
3. List and explain the topics which are included within the credit terms:
a. _____________________________________________________________
b. _____________________________________________________________
c. _____________________________________________________________
d. _____________________________________________________________
e. _____________________________________________________________
4. If the allowable tolerance for invoice totals matching is 10%, the 100% variance percentage
for the total discount amount is considered a matching discrepancy.
Total field Actual invoice total Expected invoice total Variance percentage Match status
Balance 990 990 ? ?
Total discount 0.00 18.80 ? ?
Charges 129.80 129.80 ? ?
Sales tax 279.96 275 ? ?
Other tax 0.00 0.00 ? ?
Invoice Amount ? ? ? ?
Fill the above space
Part 3: Bonus
1. Write the learning objective of this course
LO 1:_________________________________________________________
LO2:_________________________________________________________
LO3:__________________________________________________________
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