Exam 11: The Billingaccounts Receivablecash Receipts Barcrprocess

A(n)______________________________ is a business document used by the payer to notify the payee of the items being paid.

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?

To help prevent incoming cash receipts from being fraudulently misappropriated,an organization should ______________________________.

The acronym EFT stands for ______________________________.

In an organization in which the OE/S and B/AR/CR processes are separate processes,the B/AR/CR process usually accomplishes all of the following activities except:

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

The following narrative describes a cash receipts process.The annotated systems flowchart for this cash receipts process is TB Figure 11.14 and the related control matrix is Figure TB 11.15. Narrative Description TB Figure 11.14 presents a physical description of the cash receipts process in which customer payments are received by mail.The source documents include checks and RAs.Each day,the process begins with mailroom clerks opening the mail.Immediately,the clerks endorse all checks.They assemble RAs (stubs from the customer invoice-i.e. ,turnaround documents)in batches and prepare batch totals.The cash receipts data-batch total and remittance details-are then entered into the computer system via a scanner with OCR.The computer edits the data as the data are entered and computes batch totals.The batched RAs are sent to the accounts receivable department for filing,and the checks are transferred to the cashier.The editing process verifies the correctness of the entered data,including customer number and so forth.By matching the input cash receipts data to the open invoice data that reside on the accounts receivable master data in the enterprise database,the process also verifies that the customer account number,invoice number,and amount due are correct and that any cash discounts taken by the customer are legitimate (i.e. ,they have been authorized).After the data have passed all the control checks,the cash receipts event data,accounts receivable master data,and general ledger data are updated in the enterprise database.Also,the computer generates various cash reports and prepares the deposit slip.The deposit slip is transferred to the cashier.The cashier compares the checks and the deposit slip;if they agree,all documents are sent to the bank. Required: Using the format shown for control plan P-3,write descriptions for control plans P-1,P-2,P-5,M-1 and M-3.

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.

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?

In a post-billing system,invoices are prepared upon acceptance of the customer order.

Electric and gas utility companies typically use the ______________________________ type of accounts receivable system.

A credit card is a form of payment authorizing the collector to transfer funds electronically from the payer's bank account to the collector's bank account.

The Check Clearing for the 21st Century Act called ______________________________ allows banks to exchange check images electronically.

EFT includes wire transfers,credit and debit card processing,as well as payments made via the ACH Network.

In a balance-forward accounts receivable system,customer statements display previous balance,payments,and balance forward to which are added any new charges to derive the total balance due.

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.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: 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.

Which of the following statements is false?

In a(n)______________________________ billing system,invoices are prepared upon acceptance of the customer order.

The principal master data that you would expect to see in a B/AR/CR process is the:

To reduce the cost of collecting its accounts receivable,a company sells its accounts receivable to a financial organization.The service is called: