QUESTION 20 Many business events are recorded in the GL from feeder processes. T
ID: 340053 • Letter: Q
Question
QUESTION 20
Many business events are recorded in the GL from feeder processes. The first list below identifies eight business events. The second list specifies five feeder processes. Match the events with the processes. Each process may have one or more event specified.
Sales order is received from a customer.
Inventory is sold to a customer.
Inventory is received from a vendor.
A vendor is paid from whom inventory is purchased.
Bad debts are written off.
Employer taxes are accrued
A customer pays an open invoice.
Employee's insurance premiums are withheld from gross pay.
Purchasing process
Not an accounting transaction and does not feed to the General Ledger
Accounts Payable/Cash Disbursment
Order Entry/Sales Process
Payroll process
Billing/Accounts Receivable/Cash Receipts
Sales order is received from a customer.
Inventory is sold to a customer.
Inventory is received from a vendor.
A vendor is paid from whom inventory is purchased.
Bad debts are written off.
Employer taxes are accrued
A customer pays an open invoice.
Employee's insurance premiums are withheld from gross pay.
A.Purchasing process
B.Not an accounting transaction and does not feed to the General Ledger
C.Accounts Payable/Cash Disbursment
D.Order Entry/Sales Process
E.Payroll process
F.Billing/Accounts Receivable/Cash Receipts
Explanation / Answer
1. Sales order is received from a customer. - Order Entry/Sales Process
2. Inventory is sold to a customer. -- Order Entry/Sales Process
3. Inventory is received from a vendor.- Purchasing process
4. A vendor is paid from whom inventory is purchased. - Accounts Payable/Cash Disbursement
5. Bad debts are written off. - Billing/Accounts Receivable/Cash Receipts
6. Employer taxes are accrued - Accounts Payable/Cash Disbursement
7. A customer pays an open invoice.- Billing/Accounts Receivable/Cash Receipts
8. Employee's insurance premiums are withheld from gross pay. - Payroll process