Exam 11: The Billingaccounts Receivable Cash Receipts Barcr Process

The control plan ___________________________________ assumes that here is a segregation of duties between those who approve prices and those involved in the selling function.

Inputs to the B/AR/CR process normally could include all of the following except:

In a pre-billing system, invoices are prepared after the goods have been shipped and the sales order notification has been matched to the shipping's billing notification.

The acronym ACH stands for ___________________________________.

A purchasing statement is a business document designed to inform the payee of the invoices or other items being paid.

The B/AR/CR process comprises three different but related processes--namely, billing, accounts receivable, and cash receipts.Which of the following would not be an operations process goal for these three processes?

In an open-item accounts receivable system, invoices (new or settled in the current period) are listed, along with payment details.

The ____________________ event data contains invoice records.

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

Which of the following statements is false?

The billing system in which the invoice is prepared after goods have been shipped and the sales order notification has been matched to shipping's billing notification is called a:

Which of the following is not part of the horizontal information flows of the B/AR/CR process?

Funds on deposit and available are known as good funds.

A debit card is a method of payment whereby a third party, for a fee, removes from the collector the risk of non-collection of the account receivable.

TB Figure 11.9 is the control matrix for the billing process presented in Chapter 11, but with certain items omitted.In the matrix, each omission is indicated by a box.Jumbled lists of the omitted items are as follows: Omitted from Control Goals Columns 1.Accounts receivable master data 2.Ensure efficient employment of resources (people, computers) 3.For completed shipping notice inputs, ensure 4.Ensure security of resources 5.For the accounts receivable and master data, ensure 6.Ensure effectiveness of operations Omitted Control Plans 7.Confirm customer accounts regularly 8.Compare input shipping notices to sales order master data 9.Independent pricing data 10.Review shipped not billed sales orders (tickler file) 11.Independent billing authorization 12.Check for authorized prices, terms, freight, and discounts Required: Complete TB Figure 11.9 by placing one of the numbers, 1 through 12, from the above lists into each box showing a missing item.HINT: Complete the control goal column headings first, and then use the cell entries as a guide in deciding which number (7 through 12 above) belongs in each box in the recommended control plans column.

The ACH network electronically transfers funds by crediting the collector's bank account and debiting the payer's bank account for the amount of a payment.

Deposit slips are usually generated by the B/AR/CR process:

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.

The accounts receivable system in which all the accounts receivable master data contains individual open invoices, against which payments and other adjustments are applied:

The acronym EFT stands for electronic funds transfer.