Question 1

The packing slip is also known as the shipping notice.

Accepted Answer

A) True 
 B)False

Question 2

With regard to segregation of duties,rule one is that transaction authorization and transaction processing should be separated.What does this require in the revenue cycle?

Accepted Answer

Within the revenue cycle,the credit depa

Question 3

For each of the following documents,describe its purpose,the functional area preparing it,and the key data included: sales order,bill of lading,credit memo.

Accepted Answer

A sales order is used to collect informa

Question 4

What role does each of the following departments play in the cash receipts subsystem: mail room,cash receipts,accounts receivable,and general ledger? Be complete.

Accepted Answer

The mail room receives the customer's pa

Question 5

Which document triggers the revenue cycle?

Accepted Answer

A)  the sales order 
B)  the customer purchase order 
C)  the sales invoice 
D)  the journal voucher 
A)  the sales order 
B)  the customer purchase order 
C)  the sales invoice 
D)  the journal voucher

Question 6

For the revenue cycle,state two specific independent verifications that should be performed.

Accepted Answer

Shipping verifies that the goods sent fr

Question 7

All of the following are advantages of real-time processing of sales except

Accepted Answer

A)  The cash cycle is shortened 
B)  Paper work is reduced 
C)  Incorrect data entry is difficult to detect 
D)  Up-to-date information can provide a competitive advantage in the marketplace 
A)  The cash cycle is shortened 
B)  Paper work is reduced 
C)  Incorrect data entry is difficult to detect 
D)  Up-to-date information can provide a competitive advantage in the marketplace

Question 8

The bill of lading is a legal contract between the buyer and the seller.

Accepted Answer

A) True 
 B)False

Question 9

Which control does not help to ensure that accurate records are kept of customer accounts and inventory?

Accepted Answer

A)  reconcile accounts receivable control to accounts receivable subsidiary 
B)  authorize credit 
C)  segregate custody of inventory from record keeping 
D)  segregate record keeping duties of general ledger from accounts receivable 
A)  reconcile accounts receivable control to accounts receivable subsidiary 
B)  authorize credit 
C)  segregate custody of inventory from record keeping 
D)  segregate record keeping duties of general ledger from accounts receivable

Question 10

An advantage of real-time processing of sales is

Accepted Answer

A)  the cash cycle is lengthened 
B)  current inventory information is available 
C)  hard copy documents provide a permanent record of the transaction 
D)  data entry errors are corrected at the end of each batch 
A)  the cash cycle is lengthened 
B)  current inventory information is available 
C)  hard copy documents provide a permanent record of the transaction 
D)  data entry errors are corrected at the end of each batch

Question 11

What role does each of the following departments play in the sales order processing subsystem: sales,credit,and shipping? Be complete.

Accepted Answer

The sales department receives the order

Question 12

What are the three rules that ensure that no single employee or department processes a transaction in its entirety.

Accepted Answer

The three rules that ensure segregation

Question 13

In point of sale systems,authorization takes the form of validation of credit card charges.

Accepted Answer

A) True 
 B)False

Question 14

What is the purpose(s)of the stock release document?

Accepted Answer

The stock release document (also called

Question 15

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger.Describe a specific internal control procedure that would prevent this fraud.

Accepted Answer

segregation of duties;do not l

Question 16

List two points in the sales processing system when authorization is required.

Accepted Answer

credit check,sales r

Question 17

With regard to segregation of duties,rule two is that asset custody and record keeping should be separated.What does this require in the revenue cycle?

Accepted Answer

In the revenue cycle,the warehouse has c

Question 18

A remittance advice is a form of turn-around document.

Accepted Answer

A) True 
 B)False

Question 19

Internal controls for handling sales returns and allowances do not include

Accepted Answer

A)  computing bad debt expense using the percentage of credit sales 
B)  verifying that the goods have been returned 
C)  authorizing the credit memo by management 
D)  using the original sales invoice to prepare the sales returns slip 
A)  computing bad debt expense using the percentage of credit sales 
B)  verifying that the goods have been returned 
C)  authorizing the credit memo by management 
D)  using the original sales invoice to prepare the sales returns slip

Question 20

What specific internal control procedure would prevent the sale of goods on account to a fictitious customer?

Accepted Answer

The answer of What specific internal control procedure would prevent...

The packing slip is also known as the shipping notice.

With regard to segregation of duties,rule one is that transaction authorization and transaction processing should be separated.What does this require in the revenue cycle?

For each of the following documents,describe its purpose,the functional area preparing it,and the key data included: sales order,bill of lading,credit memo.

What role does each of the following departments play in the cash receipts subsystem: mail room,cash receipts,accounts receivable,and general ledger? Be complete.

Which document triggers the revenue cycle?

For the revenue cycle,state two specific independent verifications that should be performed.

All of the following are advantages of real-time processing of sales except

The bill of lading is a legal contract between the buyer and the seller.

Which control does not help to ensure that accurate records are kept of customer accounts and inventory?

An advantage of real-time processing of sales is

What role does each of the following departments play in the sales order processing subsystem: sales,credit,and shipping? Be complete.

What are the three rules that ensure that no single employee or department processes a transaction in its entirety.

In point of sale systems,authorization takes the form of validation of credit card charges.

What is the purpose(s)of the stock release document?

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger.Describe a specific internal control procedure that would prevent this fraud.

List two points in the sales processing system when authorization is required.

With regard to segregation of duties,rule two is that asset custody and record keeping should be separated.What does this require in the revenue cycle?

A remittance advice is a form of turn-around document.

Internal controls for handling sales returns and allowances do not include

What specific internal control procedure would prevent the sale of goods on account to a fictitious customer?

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

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Exam 4: The Revenue Cycle

The packing slip is also known as the shipping notice.

With regard to segregation of duties,rule one is that transaction authorization and transaction processing should be separated.What does this require in the revenue cycle?

For each of the following documents,describe its purpose,the functional area preparing it,and the key data included: sales order,bill of lading,credit memo.

What role does each of the following departments play in the cash receipts subsystem: mail room,cash receipts,accounts receivable,and general ledger? Be complete.

Which document triggers the revenue cycle?

For the revenue cycle,state two specific independent verifications that should be performed.

All of the following are advantages of real-time processing of sales except

The bill of lading is a legal contract between the buyer and the seller.

Which control does not help to ensure that accurate records are kept of customer accounts and inventory?

An advantage of real-time processing of sales is

What role does each of the following departments play in the sales order processing subsystem: sales,credit,and shipping? Be complete.

What are the three rules that ensure that no single employee or department processes a transaction in its entirety.

In point of sale systems,authorization takes the form of validation of credit card charges.

What is the purpose(s)of the stock release document?

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger.Describe a specific internal control procedure that would prevent this fraud.

List two points in the sales processing system when authorization is required.

With regard to segregation of duties,rule two is that asset custody and record keeping should be separated.What does this require in the revenue cycle?

A remittance advice is a form of turn-around document.

Internal controls for handling sales returns and allowances do not include

What specific internal control procedure would prevent the sale of goods on account to a fictitious customer?

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