Exam 11: The Billingaccounts Receivablecash Receipts Barcr Process

A(n) ______________________________ is a business document used to notify the customer of an obligation to pay the seller for merchandise which was ordered and shipped.

Funds on deposit and available for use are known as good funds.

In an entity-relationship (E-R) diagram for the B/AR/CR process, you would expect that the word trigger would appear between the boxes for?

Which of the following statements regarding Check 21 is false?

With the biller direct method of an electronic bill presentment and payment (EBPP) system, a company posts its bills/invoices to its own Web site (or to a Web site hosted by a third party) and sends an e-mail notification to its customers telling them that their bill has been posted.

Float, when applied to cash receipts, is the time between payment by customer and the availability of funds on deposit and available for use.

The two types of accounts receivable systems discussed in the text are the balance-forward and ______________________________ systems.

Below is the narrative of the "Manage customer accounts" portion (i.e., bubble 2.0) of the B/AR/CR process. Narrative Description Processes 2.1 through 2.3 relate to sales returns adjustments. This process begins when there is notification from the receiving department that goods have been returned by a customer. Subprocess 2.1 obtains data from the accounts receivable master data to validate the return. If the sales return is not valid, it will be rejected (see Reject stub) and processed through a separate exception routine. If the sales return is valid, it is sent to subprocess 2.2 where a credit memo is prepared and sent to the customer, and the accounts receivable master data is updated to reflect the credit. At the same time, the validated sales return is sent to subprocess 2.3 where a journal voucher is prepared, which is used to create a record in the AR adjustments event data store (i.e., the journal), and the general ledger is notified that a credit memo has been issued. This results in updates to sales returns and allowances and to AR. Process 2.4 is triggered by a periodic review of aging details obtained from the accounts receivable master data. The aging details would be used to identify and follow up on late-paying customer accounts. One of two types of adjustments might result from this review: The recuring adgusting entry for estimated bad debts. The periodic wite-off of "definitely warthess" customer accounts Like process 2.4, bubble 2.5, "Prepare customer statements," also is triggered by a periodic event that recurs at specified intervals, often on a monthly basis in practice. Details of unpaid invoices are extracted from the accounts receivable master data and are summarized in a statement of account that is mailed (or sent electronically) to customers. Required: Using the DFD in TB Figure 11.5 and the narrative description above, identify the words that belong in items 1 to 15 of Diagram 2.0 (TB Figure 11.6).

In a logical DFD for a B/AR/CR process, you would expect that a credit memo would be sent by the B/AR/CR process to the customer from which of the following processes?

The ______________________________ data is created as sales returns, bad debt write-offs, estimated doubtful accounts, or similar adjustments are processed.

In the cash receipts process, the control plan of immediately endorsing incoming checks is designed to achieve the control goal of:

Which of the following normally would trigger the billing process in a B/AR/CR process?

A company using a centralized database approach might not maintain a relational table for ACCOUNTS RECEIVABLE. Rather, accounts receivable balances at any point in time could be computed as the difference between the relations for which of the following continuous events?

TB Figure 11.11 is a systems flowchart for the billing process with letters indicating omitted descriptions. Fill in the omitted descriptions in the flowchart by matching the numbers from the list below with the letters on the flowchart. Mising descriptions: 1. "Billing completed," changes to AR and related accounts 2. "Shiprents nat yet billed" 3. BT 4. Compare batch tatals writh changes to AR and related accounts 5. Create and print invaice, update AR, sales event, and GL data, 5end "Billing completed" notice writh announts pasted to AR and related accaunts 6. Custamer 7. End 8. Select shipments to be billed and prepare batch total 9. Enterpise database 10. Errar rautine not shown 11. Invaice 12. Prepare and display "Shipments not yet billed" 13. Request shipments to be billed 14. Select shipments and execute billing progran

Which of the following pairs of functions would you expect might report directly to the vice president of finance?

An organization can accelerate cash deposits and prevent lapping by ______________________________.

______________________________ systems are B2C systems that use a Web site to post customers' bills and to receive their electronic payments.

In a fraud scheme known as ____, the perpetrator attempts to cover the theft of cash received from customer A by applying cash collected from customer B to A's account, then applying a receipt from C to B's account, and so forth.

The following is a list of 10 control plans: Required: Listed below are ten statements describing either the achievement of a control goal (i.e., a system success) or a system deficiency (i.e., a system failure). On the answer line to the left of each description, insert the capital letter from the list above of the best control plan to achieve the desired goal or to address the system deficiency described. A letter should be used only once.

In a(n) ______________________________ accounts receivable system, accounts receivable records consist of a customer's balance, categorized as current and past due, and current account activity, including such items as current charges, finance charges for past-due balances, and payments.