Question 1

The stub attached to the customer statement is also known as a turnaround document.

Accepted Answer

A) True 
 B)False

Question 2

For the cash receipts process, the control plan turnaround documents helps to achieve which of the following pairs of control goals?

Accepted Answer

A) ensure input validity and ensure input completeness 
B) ensure efficient employment of resources and ensure input accuracy 
C) ensure input completeness and ensure input accuracy 
D) ensure security of resources and ensure input accuracy 
A) ensure input validity and ensure input completeness 
B) ensure efficient employment of resources and ensure input accuracy 
C) ensure input completeness and ensure input accuracy 
D) ensure security of resources and ensure input accuracy

Question 3

In general, adjustments to customer balances in the accounts receivable master data will be necessary for all of the following except:

Accepted Answer

A) sales returns and allowances 
B) reversals of mispostings and other errors 
C) bad debt write-offs 
D) estimates of uncollectible accounts 
A) sales returns and allowances 
B) reversals of mispostings and other errors 
C) bad debt write-offs 
D) estimates of uncollectible accounts

Question 4

In the billing function described in the text, the control plan that contributes to effective operations is:

Accepted Answer

A) edit the shipping notification for accuracy 
B) independent billing authorization 
C) compare input shipping notices to sales order master data 
D) review shipped not billed sales orders (tickler file) 
A) edit the shipping notification for accuracy 
B) independent billing authorization 
C) compare input shipping notices to sales order master data 
D) review shipped not billed sales orders (tickler file)

Question 5

Which control plan for the cash receipts function has as its primary control goal to ensure security of resources?

Accepted Answer

A) reconcile bank account regularly. 
B) enter cash receipts close to where cash is received. 
C) immediately endorse incoming checks. 
D) one-to-one checking of deposit slips and checks. 
A) reconcile bank account regularly. 
B) enter cash receipts close to where cash is received. 
C) immediately endorse incoming checks. 
D) one-to-one checking of deposit slips and checks.

Question 6

In a logical DFD for a B/AR/CR process, which of the following data stores would you expect to interact with a process called "manage customer accounts"?

Accepted Answer

A) inventory master data 
B) accounts receivable master data 
C) sales event data 
D) cash receipts event data 
A) inventory master data 
B) accounts receivable master data 
C) sales event data 
D) cash receipts event data

Question 7

In a(n) ____________________ 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.

Accepted Answer

The answer of In a(n) ____________________ billing system, invoices are...

Question 8

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

Accepted Answer

The answer of ____________________, when applied to cash receipts, is...

Question 9

In a pre-billing system, invoices are prepared

Accepted Answer

A) immediately upon acceptance of a customer order 
B) when there is to be a delay between the time that the order is accepted and the time it is shipped 
C) where inventory balances can be determined only through physical count 
D) to improve customer relations 
A) immediately upon acceptance of a customer order 
B) when there is to be a delay between the time that the order is accepted and the time it is shipped 
C) where inventory balances can be determined only through physical count 
D) to improve customer relations

Question 10

A ____________________ is a postal address, maintained by the firm's bank, which is used solely for the purpose of collecting checks.

Accepted Answer

The answer of A ____________________ is a postal address, maintained...

Question 11

There should be a segregation of duties between the sales department and the ____________________ department.

Accepted Answer

The answer of There should be a segregation of duties...

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Below is the narrative of the "Manage customer accounts" portion 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.This report 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 recurring adjusting entry for estimated bad debts.-The periodic write-off of "definitely worthless" 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:
From the DFD in TB Figure 11.3 and the narrative description above, explode bubble 2.0 into a lower-level diagram showing the details of that process.

Accepted Answer

@#IMG-DLM& NOTE TO INSTRUCTORS: The foll

Question 14

The accounts receivable system typically used by utilities is the:

Accepted Answer

A) pre-billing system 
B) open-item system 
C) balance-forward system 
D) post-billing system 
A) pre-billing system 
B) open-item system 
C) balance-forward system 
D) post-billing system

Question 15

The control plan ________________________________________ controls the billing and cash receipts functions by asking the customer to review open invoices to determine that they are valid and accurate.

Accepted Answer

confirm cu

Question 16

The objective of cash management is to free up funds so that they can either be invested to earn interest, or used to reduced debt, thus reducing interest charges.

Accepted Answer

A) True 
 B)False

Question 17

A remittance advice generally would be recorded in which of the following pairs of data stores?

Accepted Answer

A) customer master data and accounts receivable master data 
B) sales event data and accounts receivable master data 
C) accounts receivable adjustments data and accounts receivable master data 
D) cash receipts data and accounts receivable master data 
A) customer master data and accounts receivable master data 
B) sales event data and accounts receivable master data 
C) accounts receivable adjustments data and accounts receivable master data 
D) cash receipts data and accounts receivable master data

Question 18

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?

Accepted Answer

A) perform billing 
B) manage customer accounts 
C) receive payment 
D) validate sales order 
A) perform billing 
B) manage customer accounts 
C) receive payment 
D) validate sales order

Question 19

The technology that allows information on documents to be converted into machine-readable data through a scanner is called a(n):

Accepted Answer

A) OCR 
B) MICR 
C) bar code reader 
D) digitizer 
A) OCR 
B) MICR 
C) bar code reader 
D) digitizer

Question 20

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.

Accepted Answer

The answer of The following is a list of 10...

The stub attached to the customer statement is also known as a turnaround document.

For the cash receipts process, the control plan turnaround documents helps to achieve which of the following pairs of control goals?

In general, adjustments to customer balances in the accounts receivable master data will be necessary for all of the following except:

In the billing function described in the text, the control plan that contributes to effective operations is:

Which control plan for the cash receipts function has as its primary control goal to ensure security of resources?

In a logical DFD for a B/AR/CR process, which of the following data stores would you expect to interact with a process called "manage customer accounts"?

In a(n) ____________________ 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.

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

In a pre-billing system, invoices are prepared

A ____________________ is a postal address, maintained by the firm's bank, which is used solely for the purpose of collecting checks.

There should be a segregation of duties between the sales department and the ____________________ department.

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

The accounts receivable system typically used by utilities is the:

The control plan ________________________________________ controls the billing and cash receipts functions by asking the customer to review open invoices to determine that they are valid and accurate.

The objective of cash management is to free up funds so that they can either be invested to earn interest, or used to reduced debt, thus reducing interest charges.

A remittance advice generally would be recorded in which of the following pairs of data stores?

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 technology that allows information on documents to be converted into machine-readable data through a scanner is called a(n):

Introduction to Accounting Information Systems

Enterprise Systems

Electronic Business E-Business Systems

Documenting Information Systems

Database Management Systems

Relational Databases and Sql

Controlling Information Systems: Introduction to Enterprise Risk Management and Internal Control

Controlling Information Systems: Introduction to Pervasive Controls

Controlling Information Systems: Business Process and Application Controls

The Order Entrysales Oes Process

The Purchasing Process

Accounts Payablecash Disbursements Apcd Process

The Human Resources Process HR Management and Payroll Processes

Integrated Production Processes IPP

General Ledger and Business Reporting Glbr Process

Acquiring and Implementing Accounting Information Systems

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Exam 11: The Billingaccounts Receivable Cash Receipts Barcr Process

The stub attached to the customer statement is also known as a turnaround document.

For the cash receipts process, the control plan turnaround documents helps to achieve which of the following pairs of control goals?

In general, adjustments to customer balances in the accounts receivable master data will be necessary for all of the following except:

In the billing function described in the text, the control plan that contributes to effective operations is:

Which control plan for the cash receipts function has as its primary control goal to ensure security of resources?

In a logical DFD for a B/AR/CR process, which of the following data stores would you expect to interact with a process called "manage customer accounts"?

In a(n) ____________________ 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.

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

In a pre-billing system, invoices are prepared

A ____________________ is a postal address, maintained by the firm's bank, which is used solely for the purpose of collecting checks.

There should be a segregation of duties between the sales department and the ____________________ department.

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

The accounts receivable system typically used by utilities is the:

The control plan ________________________________________ controls the billing and cash receipts functions by asking the customer to review open invoices to determine that they are valid and accurate.

The objective of cash management is to free up funds so that they can either be invested to earn interest, or used to reduced debt, thus reducing interest charges.

A remittance advice generally would be recorded in which of the following pairs of data stores?

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 technology that allows information on documents to be converted into machine-readable data through a scanner is called a(n):

Introduction to Accounting Information Systems

Enterprise Systems

Electronic Business E-Business Systems

Documenting Information Systems

Database Management Systems

Relational Databases and Sql

Controlling Information Systems: Introduction to Enterprise Risk Management and Internal Control

Controlling Information Systems: Introduction to Pervasive Controls

Controlling Information Systems: Business Process and Application Controls

The Order Entrysales Oes Process

The Purchasing Process

Accounts Payablecash Disbursements Apcd Process

The Human Resources Process HR Management and Payroll Processes

Integrated Production Processes IPP

General Ledger and Business Reporting Glbr Process

Acquiring and Implementing Accounting Information Systems

Filters