Question

Which transaction cycle includes interaction between an organization and its suppliers? a. Expenditure cycle b. Revenue Cycle 4. Human resources С. d. General Ledger and Reporting System 5. Who is Sam Coughlin? a. Former BCC Professor who taught Accounting 115 for 15 years b. Former Vice Chairman of Wal-Mart who was convicted of embezzlement and tax fraud c. Former CEO of Amazon who stole millions by falsifying invoices and receipts d. I know how he looks like but can't seem to recall why.. Socrates owns and manages Tuf Partz Auto, which is a fast-growing merchandiser selling auto parts 6. in the Bronx. In the last few months, Socrates has had to hire several new employees to keep up with the growing business. One new employee hired to work as a cashier is Neil H. On his first day at work, Neil H asks Socrates a question: Mr. Socrates, why do I need to work at a different cash register? I didn't do that well in my accounting classes, but I think that it's better for all cashiers to use the same register, because it promotes teamwork and also minimizes downtime. For example, if I lose my key to the register, instead of going back home, I can just borrow the key from Fast Eddy." (Fast Eddy is a nickname for his coworker, Eddy Plato) How should Socrates answer Neil H's question? a. "You know, you're right! Let's all use one cash register, and sell the other registers on eBay!" b. "Well, let me think. .We must use different registers because the establishment of responsibility principle states that one person must be assigned to a given task c. "l almost passed Accounting 115, and from what I remember, for related tasks, different people must do separate, but related, tasks. This is the segregation of duties principle!" d. "Listen, let me teach you something. Do you remember human resource controls principle? It says that we must assign one person per cash register. Look it up. It's in The Constitution" 7. The major difference between the Financial Reporting System (FRS) and the Management Re System (MRS) is the a. FRS provides information to internal and external users, the MRS provides information to internal users b. FRS provides discretionary information; the MRS provides nondiscretionary information c. FRS reports are prepared using information provided by the General Ledger System; the MRS provides information to the General Ledger System d. FRS reports are prepared in flexible, non-standardized formats; the MRS reports are prepared in standardized, formal formats Page 2 of 6

Answer 1

Option-(a): Expenditure cycle Reason: Option-(a) is correct because expenditure cycle refers to a transaction cycle that describes organization's interaction with its suppliers in terms of purchase of goods or consumption of services or payments for the goods or services consumed, etc. Option-(b) is incorrect because Revenue cycle includes interaction between an organization and its customers but not its suppliers. Human resource cycle includes i and its employees but not its suppliers. Option-(d) is incorrect because General ledger and reporting system cycle includes interaction between an organization and its accounting department but not its suppliers.