Question 1

Which of the following duties could be performed by the same individual and not violate segregation of duty controls?

Accepted Answer

A) handling cash and posting to customer accounts 
B) issuing credit memos and maintaining customer accounts 
C) handling cash and authorizing credit memos 
D) handling cash receipts and mailing vendor payments 
A) handling cash and posting to customer accounts 
B) issuing credit memos and maintaining customer accounts 
C) handling cash and authorizing credit memos 
D) handling cash receipts and mailing vendor payments D

Question 2

Before a shipping notice is prepared during the revenue cycle,shipping department personnel should match the inventory received from the warehouse to the

Accepted Answer

A) sales order. 
B) picking tickets. 
C) picking ticket and sales order. 
D) sales order and bill of lading. 
A) sales order. 
B) picking tickets. 
C) picking ticket and sales order. 
D) sales order and bill of lading. C

Question 3

It costs ________ times as much to acquire a new customer as it does to make a sale to an existing customer.

Accepted Answer

A) two 
B) five 
C) eight 
D) ten 
A) two 
B) five 
C) eight 
D) ten B

Question 4

The manager of Cezary Foods was purchasing inventory from Bogumil Distributors online.The manager entered the items and quantities,completed the checkout and payment process,but received the following error message before the order could be processed: "Please enter your phone number." This message is likely the result of a

Accepted Answer

A) validity check. 
B) completeness test. 
C) closed-loop verification. 
D) customer relationship management software application. 
A) validity check. 
B) completeness test. 
C) closed-loop verification. 
D) customer relationship management software application.

Question 5

Describe four threats in the revenue cycle and identify appropriate controls for each threat.

Accepted Answer

Answers can include the following inform

Question 6

Which of the following is not a general threat to the revenue cycle?

Accepted Answer

A) inaccurate master data 
B) loss of customers 
C) poor performance 
D) unauthorized disclosure of sensitive information 
A) inaccurate master data 
B) loss of customers 
C) poor performance 
D) unauthorized disclosure of sensitive information

Question 7

Describe the two methods to manage accounts receivable.

Accepted Answer

Open invoice system - customers pay the

Question 8

Discuss the general control issue of the loss of data,as it relates to the revenue cycle.

Accepted Answer

One of the two general objectives that p

Question 9

A type of business document in which part of the original document is returned to the source for further processing is called a ________ document.

Accepted Answer

A) feedback 
B) returnable 
C) closed-loop 
D) turnaround 
A) feedback 
B) returnable 
C) closed-loop 
D) turnaround

Question 10

The ________ is a legal contract that defines responsibility for goods that are in transit.

Accepted Answer

A) bill of lading 
B) packing slip 
C) back order 
D) picking list 
A) bill of lading 
B) packing slip 
C) back order 
D) picking list

Question 11

Which of the following controls can minimize the threat of incomplete/inaccurate orders?

Accepted Answer

A) Separation of billing and shipping functions. 
B) Use of cash registers. 
C) Bar-code and RFID technology. 
D) Restriction of access to master data. 
A) Separation of billing and shipping functions. 
B) Use of cash registers. 
C) Bar-code and RFID technology. 
D) Restriction of access to master data.

Question 12

The basic document created in the billing process is call a ________.

Accepted Answer

A) bill of lading 
B) sales invoice 
C) sales order 
D) packing list 
A) bill of lading 
B) sales invoice 
C) sales order 
D) packing list

Question 13

The packing slip

Accepted Answer

A) lists the quantity,price,and description of each item included in the shipment. 
B) lists the price and description of each item included in the shipment. 
C) lists the quantity and description of each item included in the shipment. 
D) lists the quantity and price of each item included in the shipment. 
A) lists the quantity,price,and description of each item included in the shipment. 
B) lists the price and description of each item included in the shipment. 
C) lists the quantity and description of each item included in the shipment. 
D) lists the quantity and price of each item included in the shipment.

Question 14

Special software packages called ________ can help an organization manage customer service.

Accepted Answer

A) EDI systems 
B) CRM systems 
C) POS systems 
D) VMI systems 
A) EDI systems 
B) CRM systems 
C) POS systems 
D) VMI systems

Question 15

Bogumil Distributors is an Internet-based wholesaler.Customers enter their orders online.The manager of Cezary Foods was entering an order when the following error message popped up: "Your order exceeds your available credit.You will be contacted within 8 hours." This message is the result of a

Accepted Answer

A) sign check. 
B) validity check. 
C) reasonableness test. 
D) limit check. 
A) sign check. 
B) validity check. 
C) reasonableness test. 
D) limit check.

Question 16

For strongest segregation of duties,a sales representative should never be allowed to

Accepted Answer

A) discuss the company's products. 
B) negotiate the sales price. 
C) approve a sale on credit. 
D) send a customer a gift. 
A) discuss the company's products. 
B) negotiate the sales price. 
C) approve a sale on credit. 
D) send a customer a gift.

Question 17

Define and describe benefits of a CRM system.

Accepted Answer

CRM stands for customer relationship man

Question 18

It has been discovered that credit sales have been made to customers with a poor credit rating.If this continues,the company will face increasing uncollectible receivables and losses due to bad debts.Separation of duties between ________ and ________ should help resolve the problem.

Accepted Answer

A) shipping;billing duties 
B) credit approval;marketing 
C) billing;credit approval 
D) marketing;accounts receivable 
A) shipping;billing duties 
B) credit approval;marketing 
C) billing;credit approval 
D) marketing;accounts receivable

Question 19

Discuss the revenue cycle threat of stockouts,carrying costs,and markdowns.

Accepted Answer

Stockouts,carrying costs,and markdowns a

Question 20

Which of the following is not a general threat to the revenue cycle?

Accepted Answer

A) inaccurate master data 
B) loss of customers 
C) poor performance 
D) unauthorized disclosure of sensitive information 
A) inaccurate master data 
B) loss of customers 
C) poor performance 
D) unauthorized disclosure of sensitive information

Exam 12: The Revenue Cycle: Sales to Cash Collections

Which of the following duties could be performed by the same individual and not violate segregation of duty controls?

Before a shipping notice is prepared during the revenue cycle,shipping department personnel should match the inventory received from the warehouse to the

It costs ________ times as much to acquire a new customer as it does to make a sale to an existing customer.

Describe four threats in the revenue cycle and identify appropriate controls for each threat.

Which of the following is not a general threat to the revenue cycle?

Describe the two methods to manage accounts receivable.

Discuss the general control issue of the loss of data,as it relates to the revenue cycle.

A type of business document in which part of the original document is returned to the source for further processing is called a ________ document.

The ________ is a legal contract that defines responsibility for goods that are in transit.

Which of the following controls can minimize the threat of incomplete/inaccurate orders?

The basic document created in the billing process is call a ________.

The packing slip

Special software packages called ________ can help an organization manage customer service.

Bogumil Distributors is an Internet-based wholesaler.Customers enter their orders online.The manager of Cezary Foods was entering an order when the following error message popped up: "Your order exceeds your available credit.You will be contacted within 8 hours." This message is the result of a

For strongest segregation of duties,a sales representative should never be allowed to

Define and describe benefits of a CRM system.

It has been discovered that credit sales have been made to customers with a poor credit rating.If this continues,the company will face increasing uncollectible receivables and losses due to bad debts.Separation of duties between ________ and ________ should help resolve the problem.

Discuss the revenue cycle threat of stockouts,carrying costs,and markdowns.

Which of the following is not a general threat to the revenue cycle?

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

It has been discovered that credit sales have been made to customers with a poor credit rating.If this continues,the company will face increasing uncollectible receivables and losses due to bad debts.Separation of duties between and should help resolve the problem.