Question 1

Adjustments to accounts receivable for payments received from customers is based upon

Accepted Answer

A)  the customer's check 
B)  the cash prelist 
C)  the remittance advice that accompanies payment 
D)  a memo prepared in the mailroom 
A)  the customer's check 
B)  the cash prelist 
C)  the remittance advice that accompanies payment 
D)  a memo prepared in the mailroom

Question 2

What is automation and why is it used?

Accepted Answer

Automation involves using technology to

Question 3

What specific internal control procedure would prevent a customer from being billed for all 50 items ordered although only 40 items were shipped?

Accepted Answer

Billing should recon

Question 4

The stock release copy of the sales order is not used to

Accepted Answer

A)  locate and pick the items from the warehouse shelves 
B)  record any out-of-stock items 
C)  authorize the warehouse clerk to release custody of the inventory to shipping 
D)  record the reduction of inventory 
A)  locate and pick the items from the warehouse shelves 
B)  record any out-of-stock items 
C)  authorize the warehouse clerk to release custody of the inventory to shipping 
D)  record the reduction of inventory

Question 5

The reconciliation that occurs in the shipping department is intended to ensure that

Accepted Answer

A)  credit has been approved 
B)  the customer is billed for the exact quantity shipped 
C)  the goods shipped match the goods ordered 
D)  inventory records are reduced for the goods shipped 
A)  credit has been approved 
B)  the customer is billed for the exact quantity shipped 
C)  the goods shipped match the goods ordered 
D)  inventory records are reduced for the goods shipped

Question 6

Distinguish between a packing slip,shipping notice,and a bill of lading.

Accepted Answer

The packing slip travels with the goods

Question 7

State two specific functions or jobs that should be segregated in the sales processing system.

Accepted Answer

sales order processing and cre

Question 8

State two specific functions or jobs that should be segregated in the cash receipts system.

Accepted Answer

cash receipts (custody)from ac

Question 9

If a customer submits a written purchase order,there is no need to prepare a sales order.

Accepted Answer

A) True 
 B)False

Question 10

Integrated accounting systems automatically transfer data between modules.

Accepted Answer

A) True 
 B)False

Question 11

The shipping notice

Accepted Answer

A)  is mailed to the customer 
B)  is a formal contract between the seller and the shipping company 
C)  is always prepared by the shipping clerk 
D)  informs the billing department of the quantities shipped 
A)  is mailed to the customer 
B)  is a formal contract between the seller and the shipping company 
C)  is always prepared by the shipping clerk 
D)  informs the billing department of the quantities shipped

Question 12

Describe the key tasks in the sales order process.

Accepted Answer

Sales order procedures include the tasks

Question 13

The printer ran out of preprinted sales invoice forms and several sales invoices were not printed.The best internal control to detect this error is

Accepted Answer

A)  a batch total of sales invoices to be prepared compared to the actual number of sales invoices prepared 
B)  sequentially numbered sales invoices 
C)  visual verification that all sales invoices were prepared 
D)  none of the above will detect this error 
A)  a batch total of sales invoices to be prepared compared to the actual number of sales invoices prepared 
B)  sequentially numbered sales invoices 
C)  visual verification that all sales invoices were prepared 
D)  none of the above will detect this error

Question 14

Which situation indicates a weak internal control structure?

Accepted Answer

A)  the mailroom clerk authorizes credit memos 
B)  the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers 
C)  the warehouse clerk obtains a signature before releasing goods for shipment 
D)  the accounts receivable clerk prepares customer statements every month 
A)  the mailroom clerk authorizes credit memos 
B)  the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers 
C)  the warehouse clerk obtains a signature before releasing goods for shipment 
D)  the accounts receivable clerk prepares customer statements every month

Question 15

How is independent verification carried out in a manual revenue system?

Accepted Answer

Independent verification occurs in sever

Question 16

The purpose of the invoice is to bill the customer.

Accepted Answer

A) True 
 B)False

Question 17

The most effective internal control procedure to prevent or detect the creation of fictitious credit memoranda for sales returns is to

Accepted Answer

A)  supervise the accounts receivable department 
B)  limit access to credit memoranda 
C)  prenumber and sequence check all credit memoranda 
D)  require management approval for all credit memoranda 
A)  supervise the accounts receivable department 
B)  limit access to credit memoranda 
C)  prenumber and sequence check all credit memoranda 
D)  require management approval for all credit memoranda

Question 18

What specific internal control procedure would prevent an accounts receivable clerk from issuing a fictitious credit memo to a customer (who is also a relative)for goods that were "supposedly" returned from previous sales?

Accepted Answer

Credit memo should be authoriz

Question 19

What task can the accounts receivable department engage in to verify that all checks sent by
customers have been appropriately deposited and recorded?

Accepted Answer

The company should periodically,perhaps

Question 20

How is EDI more than technology? What unique control problems may it pose?

Accepted Answer

EDI represents a unique business arrange

Adjustments to accounts receivable for payments received from customers is based upon

What is automation and why is it used?

What specific internal control procedure would prevent a customer from being billed for all 50 items ordered although only 40 items were shipped?

The stock release copy of the sales order is not used to

The reconciliation that occurs in the shipping department is intended to ensure that

Distinguish between a packing slip,shipping notice,and a bill of lading.

State two specific functions or jobs that should be segregated in the sales processing system.

State two specific functions or jobs that should be segregated in the cash receipts system.

If a customer submits a written purchase order,there is no need to prepare a sales order.

Integrated accounting systems automatically transfer data between modules.

The shipping notice

Describe the key tasks in the sales order process.

The printer ran out of preprinted sales invoice forms and several sales invoices were not printed.The best internal control to detect this error is

Which situation indicates a weak internal control structure?

How is independent verification carried out in a manual revenue system?

The purpose of the invoice is to bill the customer.

The most effective internal control procedure to prevent or detect the creation of fictitious credit memoranda for sales returns is to

What specific internal control procedure would prevent an accounts receivable clerk from issuing a fictitious credit memo to a customer (who is also a relative)for goods that were "supposedly" returned from previous sales?

What task can the accounts receivable department engage in to verify that all checks sent by customers have been appropriately deposited and recorded?

How is EDI more than technology? What unique control problems may it pose?

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters

Exam 4: The Revenue Cycle

Adjustments to accounts receivable for payments received from customers is based upon

What is automation and why is it used?

What specific internal control procedure would prevent a customer from being billed for all 50 items ordered although only 40 items were shipped?

The stock release copy of the sales order is not used to

The reconciliation that occurs in the shipping department is intended to ensure that

Distinguish between a packing slip,shipping notice,and a bill of lading.

State two specific functions or jobs that should be segregated in the sales processing system.

State two specific functions or jobs that should be segregated in the cash receipts system.

If a customer submits a written purchase order,there is no need to prepare a sales order.

Integrated accounting systems automatically transfer data between modules.

The shipping notice

Describe the key tasks in the sales order process.

The printer ran out of preprinted sales invoice forms and several sales invoices were not printed.The best internal control to detect this error is

Which situation indicates a weak internal control structure?

How is independent verification carried out in a manual revenue system?

The purpose of the invoice is to bill the customer.

The most effective internal control procedure to prevent or detect the creation of fictitious credit memoranda for sales returns is to

What specific internal control procedure would prevent an accounts receivable clerk from issuing a fictitious credit memo to a customer (who is also a relative)for goods that were "supposedly" returned from previous sales?

What task can the accounts receivable department engage in to verify that all checks sent by customers have been appropriately deposited and recorded?

How is EDI more than technology? What unique control problems may it pose?

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters