Question 1

Usually specific authorization is required for all of the following except

Accepted Answer

A)  sales on account which exceed the credit limit 
B)  sales of goods at the list price 
C)  a cash refund for goods returned without a receipt 
D)  write off of an uncollectible account receivable 
A)  sales on account which exceed the credit limit 
B)  sales of goods at the list price 
C)  a cash refund for goods returned without a receipt 
D)  write off of an uncollectible account receivable

Question 2

In the revenue cycle,the internal control "limit access" applies to physical assets only.

Accepted Answer

A) True 
 B)False

Question 3

EDI trading partner agreements specify all of the following except

Accepted Answer

A)  selling price 
B)  quantities to be sold 
C)  payment terms 
D)  person to authorize transactions 
A)  selling price 
B)  quantities to be sold 
C)  payment terms 
D)  person to authorize transactions

Question 4

Another name for the stock release form is the picking ticket.

Accepted Answer

A) True 
 B)False

Question 5

The data processing method that can shorten the cash cycle is

Accepted Answer

A)  batch, sequential file processing 
B)  batch, direct access file processing 
C)  real-time file processing 
D)  none of the above 
A)  batch, sequential file processing 
B)  batch, direct access file processing 
C)  real-time file processing 
D)  none of the above

Question 6

The accounts receivable clerk is responsible for updating the AR Control accounts to reflect each customer sale.

Accepted Answer

A) True 
 B)False

Question 7

Warehouse stock records are the formal accounting records for inventory.

Accepted Answer

A) True 
 B)False

Question 8

Give three examples of Access Control in a Point-of-Sale (POS)system.

Accepted Answer

·Lock on the cash drawer
·Internal cash

Question 9

Inventory control has physical custody of inventory.

Accepted Answer

A) True 
 B)False

Question 10

What specific internal control procedure would prevent an increase in sales returns since salesmen were placed on commission?

Accepted Answer

Customer credit shou

Question 11

Which of the following is not a risk exposure in a PC accounting system?

Accepted Answer

A)  reliance on paper documentation is increased 
B)  functions that are segregated in a manual environment may be combined in a microcomputer accounting system 
C)  backup procedures require human intervention 
D)  data are easily accessible 
A)  reliance on paper documentation is increased 
B)  functions that are segregated in a manual environment may be combined in a microcomputer accounting system 
C)  backup procedures require human intervention 
D)  data are easily accessible

Question 12

A bill of lading is a request for payment for shipping charges.

Accepted Answer

A) True 
 B)False

Question 13

Sales return involves receiving,sales,credit,and billing departments,but not accounts receivable.

Accepted Answer

A) True 
 B)False

Question 14

Which type of control is considered a compensating control?

Accepted Answer

A)  segregation of duties 
B)  access control 
C)  supervision 
D)  accounting records 
A)  segregation of duties 
B)  access control 
C)  supervision 
D)  accounting records

Question 15

The revenue cycle utilizes all of the following files except

Accepted Answer

A)  credit memo file 
B)  sales history file 
C)  shipping report file 
D)  cost data reference file 
A)  credit memo file 
B)  sales history file 
C)  shipping report file 
D)  cost data reference file

Question 16

Periodically,the general ledger department receives all of the following except

Accepted Answer

A)  total increases to accounts receivable 
B)  total of all sales backorders 
C)  total of all sales 
D)  total decreases in inventory 
A)  total increases to accounts receivable 
B)  total of all sales backorders 
C)  total of all sales 
D)  total decreases in inventory

Question 17

The clerk who opens the mail routinely steals remittances and checks.Describe a specific internal control procedure that would prevent or detect this fraud.

Accepted Answer

supervision (two peo

Question 18

The adjustment to accounting records to reflect the decrease in inventory due to a sale occurs in the

Accepted Answer

A)  warehouse 
B)  shipping department 
C)  billing department 
D)  inventory control department 
A)  warehouse 
B)  shipping department 
C)  billing department 
D)  inventory control department

Question 19

A cash prelist is

Accepted Answer

A)  a document that records sales returns and allowances 
B)  a document returned by customers with their payments 
C)  the source of information used to prepare monthly statements 
D)  none of the above 
A)  a document that records sales returns and allowances 
B)  a document returned by customers with their payments 
C)  the source of information used to prepare monthly statements 
D)  none of the above

Question 20

Commercial accounting systems have fully integrated modules.The word "integrated" means that

Accepted Answer

A)  segregation of duties is not possible 
B)  transfer of information among modules occurs automatically 
C)  batch processing is not an option 
D)  separate entries are made in the general ledger accounts and the subsidiary ledgers 
A)  segregation of duties is not possible 
B)  transfer of information among modules occurs automatically 
C)  batch processing is not an option 
D)  separate entries are made in the general ledger accounts and the subsidiary ledgers

Usually specific authorization is required for all of the following except

In the revenue cycle,the internal control "limit access" applies to physical assets only.

EDI trading partner agreements specify all of the following except

Another name for the stock release form is the picking ticket.

The data processing method that can shorten the cash cycle is

The accounts receivable clerk is responsible for updating the AR Control accounts to reflect each customer sale.

Warehouse stock records are the formal accounting records for inventory.

Give three examples of Access Control in a Point-of-Sale (POS)system.

Inventory control has physical custody of inventory.

What specific internal control procedure would prevent an increase in sales returns since salesmen were placed on commission?

Which of the following is not a risk exposure in a PC accounting system?

A bill of lading is a request for payment for shipping charges.

Sales return involves receiving,sales,credit,and billing departments,but not accounts receivable.

Which type of control is considered a compensating control?

The revenue cycle utilizes all of the following files except

Periodically,the general ledger department receives all of the following except

The clerk who opens the mail routinely steals remittances and checks.Describe a specific internal control procedure that would prevent or detect this fraud.

The adjustment to accounting records to reflect the decrease in inventory due to a sale occurs in the

A cash prelist is

Commercial accounting systems have fully integrated modules.The word "integrated" means that

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

Usually specific authorization is required for all of the following except

In the revenue cycle,the internal control "limit access" applies to physical assets only.

EDI trading partner agreements specify all of the following except

Another name for the stock release form is the picking ticket.

The data processing method that can shorten the cash cycle is

The accounts receivable clerk is responsible for updating the AR Control accounts to reflect each customer sale.

Warehouse stock records are the formal accounting records for inventory.

Give three examples of Access Control in a Point-of-Sale (POS)system.

Inventory control has physical custody of inventory.

What specific internal control procedure would prevent an increase in sales returns since salesmen were placed on commission?

Which of the following is not a risk exposure in a PC accounting system?

A bill of lading is a request for payment for shipping charges.

Sales return involves receiving,sales,credit,and billing departments,but not accounts receivable.

Which type of control is considered a compensating control?

The revenue cycle utilizes all of the following files except

Periodically,the general ledger department receives all of the following except

The clerk who opens the mail routinely steals remittances and checks.Describe a specific internal control procedure that would prevent or detect this fraud.

The adjustment to accounting records to reflect the decrease in inventory due to a sale occurs in the

A cash prelist is

Commercial accounting systems have fully integrated modules.The word "integrated" means that

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