Question 1

Which of the following is not a key decision that needs to be made in the revenue cycle?

Accepted Answer

A)  How should merchandise be delivered to customers?
B)  Should credit be extended to customers?
C)  How can customer payments be processed to maximize cash flow?
D)  Which vendor should inventory be purchased from?E) A) and B)
F) B) and D)

Question 2

Laz Chance wears roller blades and headphones when he is at work at the Squishy Things Toy Company.He is a product packer.The headphones give him computer-generated instructions so he knows the location of each item and quantity that should be included in the order.These instructions are the equivalent of a

Accepted Answer

A)  picking ticket.
B)  bill of lading.
C)  packing slip.
D)  sales order.E) A) and D)
F) All of the above

Question 3

How can Electronic Data Interchange (EDI)facilitate the billing and accounts receivable process?

Accepted Answer

The basic document created in the billin...

Question 4

A type of business document in which part of the original document is returned to the source for further processing is called a ________ document.

Accepted Answer

A)  feedback
B)  returnable
C)  closed-loop
D)  turnaroundE) C) and D)
F) All of the above

Question 5

Key differences exist when an integrated Enterprise Resource Planning system (ERP) replaces an existing AIS or legacy system.For example,________ are more accurate and timely,enabling sales order entry staff to provide customers more accurate information about delivery dates.

Accepted Answer

A)  inventory records
B)  cash receipts
C)  credit approval decisions
D)  exception reportsE) B) and C)
F) None of the above

Question 6

The accounts receivable clerk destroys all invoices for sales made to family and friends and does not record the sales in the accounts receivable subsidiary ledgers.The family and friends usually give the clerk cash as a "thank you." Which procedure will not prevent or detect this fraud?

Accepted Answer

A)  Send monthly statements to all customers with balances owed.
B)  Reconcile sales invoices in the billing department to the total debits to accounts receivable subsidiary ledgers.
C)  Sequentially prenumber all invoices and prepare a sequence check at the end of each day.
D)  Reconcile the accounts receivable control account to the accounts receivable subsidiary ledger.E) All of the above
F) C) and D)

Question 7

In the ________ method of tracking accounts receivable,customers pay according to the amount showing on their monthly statement and payments are applied against the total account balance.

Accepted Answer

A)  specific identification
B)  open-invoice
C)  balance forward
D)  remittance adviceE) A) and B)
F) A) and C)

Question 8

Explain how to effectively segregate duties in the sales order activity.

Accepted Answer

Sales orders should be recorded by sales...

Question 9

All of the following edit checks for online editing of accounts receivable transactions would probably be included except

Accepted Answer

A)  validity checks on customer ID and invoice numbers.
B)  check digit verification on the amount of the sale.
C)  closed loop verification on the customer ID.
D)  field checks on the values in dollar fields.E) All of the above
F) B) and C)

Question 10

What is RFID tags and how do companies use them to improve their shipping process?

Accepted Answer

RFID tags improve the efficiency and acc...

Question 11

Discuss the advantage and disadvantage of the open-invoice method.

Accepted Answer

One advantage of the open-invoice method...

Question 12

The ________ normally triggers the billing process in the revenue cycle.

Accepted Answer

A)  sales order received from the sales department
B)  picking ticket received from the sales department
C)  packing slip received from the shipping department
D)  journal voucher received from the shipping departmentE) B) and C)
F) A) and C)

Question 13

Two documents usually accompany goods shipped to a customer.What are the two documents?

Accepted Answer

A)  a bill of lading and an invoice
B)  a packing slip and a bill of lading
C)  an invoice and a packing slip
D)  an invoice and a sales orderE) All of the above
F) C) and D)

Question 14

Special software packages called ________ can help an organization manage customer service.

Accepted Answer

A)  EDI systems
B)  CRM systems
C)  POS systems
D)  VMI systemsE) None of the above
F) B) and C)

Question 15

A picking ticket is generated by the

Accepted Answer

A)  shipping process.
B)  sales order entry process.
C)  packing process.
D)  billing process.E) A) and B)
F) A) and C)

Question 16

How is credit approval generally handled for established customers with a documented payment history?

Accepted Answer

A)  A new credit application is requested.
B)  General authorization by a sales clerk
C)  Specific authorization by the credit manager
D)  A formal credit check should be made for each sale.E) A) and D)
F) A) and C)

Question 17

Because it is the most fungible of all assets,the management of cash has always been the most difficult of all control issues.The most important of cash controls is

Accepted Answer

A)  minimization of cash handling.
B)  lockbox arrangements.
C)  segregation of duties.
D)  frequent reconciliation of records.E) None of the above
F) B) and C)

Question 18

Which of the following duties could be performed by the same individual and not violate segregation of duty controls?

Accepted Answer

A)  handling cash and posting to customer accounts
B)  issuing credit memos and maintaining customer accounts
C)  handling cash and authorizing credit memos
D)  handling cash receipts and mailing vendor paymentsE) A) and B)
F) All of the above

Question 19

The cashier deposits checks for Benedek Incorporated and also prepares payments to vendors.Of the following,who is best able to reconcile the bank statement to Benedek's records on a regular basis?

Accepted Answer

A)  cashier
B)  internal audit department
C)  treasurer
D)  external auditorE) C) and D)
F) A) and C)

Question 20

The best solution for maintaining accurate automated perpetual inventory system is to use

Accepted Answer

A)  closed-loop verification when inventory is received from vendors and recorded.
B)  point of sale devices integrated with inventory records.
C)  periodic physical counts to reconcile with perpetual inventory records.
D)  RFID tags.E) None of the above
F) All of the above

Exam 12: The Revenue Cycle: Sales to Cash Collections

Which of the following is not a key decision that needs to be made in the revenue cycle?

Correct Answer
verified

Because it is the most fungible of all assets,the management of cash has always been the most difficult of all control issues.The most important of cash controls is

Correct Answer
verified

The ________ normally triggers the billing process in the revenue cycle.

Correct Answer
verified

What is RFID tags and how do companies use them to improve their shipping process?

Correct Answer
verified
RFID tags improve the efficiency and acc...
View Answer

Discuss the advantage and disadvantage of the open-invoice method.

Correct Answer
verified
One advantage of the open-invoice method...
View Answer

A type of business document in which part of the original document is returned to the source for further processing is called a ________ document.

Correct Answer
verified

Special software packages called ________ can help an organization manage customer service.

Correct Answer
verified

How can Electronic Data Interchange (EDI)facilitate the billing and accounts receivable process?

Correct Answer
verified
The basic document created in the billin...
View Answer

Explain how to effectively segregate duties in the sales order activity.

Correct Answer
verified
Sales orders should be recorded by sales...
View Answer

The best solution for maintaining accurate automated perpetual inventory system is to use

Correct Answer
verified

The accounts receivable clerk destroys all invoices for sales made to family and friends and does not record the sales in the accounts receivable subsidiary ledgers.The family and friends usually give the clerk cash as a "thank you." Which procedure will not prevent or detect this fraud?

Correct Answer
verified

How is credit approval generally handled for established customers with a documented payment history?

Correct Answer
verified

In the ________ method of tracking accounts receivable,customers pay according to the amount showing on their monthly statement and payments are applied against the total account balance.

Correct Answer
verified

The cashier deposits checks for Benedek Incorporated and also prepares payments to vendors.Of the following,who is best able to reconcile the bank statement to Benedek's records on a regular basis?

Correct Answer
verified

All of the following edit checks for online editing of accounts receivable transactions would probably be included except

Correct Answer
verified

A picking ticket is generated by the

Correct Answer
verified

Which of the following duties could be performed by the same individual and not violate segregation of duty controls?

Correct Answer
verified

Two documents usually accompany goods shipped to a customer.What are the two documents?

Correct Answer
verified

Key differences exist when an integrated Enterprise Resource Planning system (ERP) replaces an existing AIS or legacy system.For example,________ are more accurate and timely,enabling sales order entry staff to provide customers more accurate information about delivery dates.

Correct Answer
verified

Correct Answer
verified

Exam 12: The Revenue Cycle: Sales to Cash Collections

Which of the following is not a key decision that needs to be made in the revenue cycle?

Correct AnswerverifiedShow Answer

Because it is the most fungible of all assets,the management of cash has always been the most difficult of all control issues.The most important of cash controls is

Correct AnswerverifiedShow Answer

The ________ normally triggers the billing process in the revenue cycle.

Correct AnswerverifiedShow Answer

What is RFID tags and how do companies use them to improve their shipping process?

Correct AnswerverifiedRFID tags improve the efficiency and acc...View AnswerShow Answer

Discuss the advantage and disadvantage of the open-invoice method.

Correct AnswerverifiedOne advantage of the open-invoice method...View AnswerShow Answer

A type of business document in which part of the original document is returned to the source for further processing is called a ________ document.

Correct AnswerverifiedShow Answer

Special software packages called ________ can help an organization manage customer service.

Correct AnswerverifiedShow Answer

How can Electronic Data Interchange (EDI)facilitate the billing and accounts receivable process?

Correct AnswerverifiedThe basic document created in the billin...View AnswerShow Answer

Explain how to effectively segregate duties in the sales order activity.

Correct AnswerverifiedSales orders should be recorded by sales...View AnswerShow Answer

The best solution for maintaining accurate automated perpetual inventory system is to use

Correct AnswerverifiedShow Answer

The accounts receivable clerk destroys all invoices for sales made to family and friends and does not record the sales in the accounts receivable subsidiary ledgers.The family and friends usually give the clerk cash as a "thank you." Which procedure will not prevent or detect this fraud?

Correct AnswerverifiedShow Answer

How is credit approval generally handled for established customers with a documented payment history?

Correct AnswerverifiedShow Answer

In the ________ method of tracking accounts receivable,customers pay according to the amount showing on their monthly statement and payments are applied against the total account balance.

Correct AnswerverifiedShow Answer

The cashier deposits checks for Benedek Incorporated and also prepares payments to vendors.Of the following,who is best able to reconcile the bank statement to Benedek's records on a regular basis?

Correct AnswerverifiedShow Answer

All of the following edit checks for online editing of accounts receivable transactions would probably be included except

Correct AnswerverifiedShow Answer

A picking ticket is generated by the

Correct AnswerverifiedShow Answer

Which of the following duties could be performed by the same individual and not violate segregation of duty controls?

Correct AnswerverifiedShow Answer

Two documents usually accompany goods shipped to a customer.What are the two documents?

Correct AnswerverifiedShow Answer

Key differences exist when an integrated Enterprise Resource Planning system (ERP) replaces an existing AIS or legacy system.For example,________ are more accurate and timely,enabling sales order entry staff to provide customers more accurate information about delivery dates.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
RFID tags improve the efficiency and acc...
View Answer

Correct Answer
verified
One advantage of the open-invoice method...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The basic document created in the billin...
View Answer

Correct Answer
verified
Sales orders should be recorded by sales...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified