Question 1

The activities involved in soliciting and processing customer orders within the revenue cycle are known as the

Accepted Answer

A) sales order entry process. 
B) shipping order process. 
C) revenue process. 
D) marketing process. 
A) sales order entry process. 
B) shipping order process. 
C) revenue process. 
D) marketing process.

Question 2

Which of the decisions below is not ordinarily found as part of the revenue cycle?

Accepted Answer

A) What credit terms should be offered? 
B) How often should accounts receivable be subjected to audit? 
C) How can customer payments be processed to maximize cash flows? 
D) What are the optimal prices for each product or service? 
A) What credit terms should be offered? 
B) How often should accounts receivable be subjected to audit? 
C) How can customer payments be processed to maximize cash flows? 
D) What are the optimal prices for each product or service?

Question 3

For strongest segregation of duties,the credit manager should never report to

Accepted Answer

A) the marketing department. 
B) the accounting department. 
C) the credit department. 
D) the IT department. 
A) the marketing department. 
B) the accounting department. 
C) the credit department. 
D) the IT department.

Question 4

Upon notification from the receiving department that the goods have been returned,the manager issues a(n)________ ,which authorizes the adjustment of the customer's account.

Accepted Answer

A) debt memo 
B) credit memo 
C) adjusting entry 
D) bill of lading 
A) debt memo 
B) credit memo 
C) adjusting entry 
D) bill of lading

Question 5

Customers that send their payments electronically directly to the billing company's bank are using

Accepted Answer

A) electronic funds transfer (EFT). 
B) electronic data interchange (EDI). 
C) procurement cards. 
D) an electronic lockbox. 
A) electronic funds transfer (EFT). 
B) electronic data interchange (EDI). 
C) procurement cards. 
D) an electronic lockbox.

Question 6

The bill of lading is a legal contract that defines responsibility for the goods in the company's warehouse.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following controls can minimize the threat of theft of inventory?

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 8

Separating the shipping and billing functions is designed to reduce the threat of

Accepted Answer

A) failure to bill customers. 
B) billing customers for wrong quantities. 
C) billing customers before merchandise has been shipped. 
D) shipping the wrong merchandise. 
A) failure to bill customers. 
B) billing customers for wrong quantities. 
C) billing customers before merchandise has been shipped. 
D) shipping the wrong merchandise.

Question 9

Key differences exist when an integrated Enterprise Resource Planning system (ERP)replaces an existing AIS or legacy system.For example,________ are more accurate and timely,enabling sales order entry staff to provide customers more accurate information about delivery dates.

Accepted Answer

A) inventory records 
B) cash receipts 
C) credit approval decisions 
D) exception reports 
A) inventory records 
B) cash receipts 
C) credit approval decisions 
D) exception reports

Question 10

Two documents usually accompany goods shipped to a customer.What are the two documents?

Accepted Answer

A) a bill of lading and an invoice 
B) a packing slip and a bill of lading 
C) an invoice and a packing slip 
D) an invoice and a sales order 
A) a bill of lading and an invoice 
B) a packing slip and a bill of lading 
C) an invoice and a packing slip 
D) an invoice and a sales order

Question 11

The benefits of a lockbox arrangement with a bank are maximized when

Accepted Answer

A) the bank is located nearby to the company,so remittance advices can be delivered to the company every day. 
B) several banks around the country are used,in order to minimize the time payments spend in the mail. 
C) an arrangement is made with only one bank,so all remittance advices can be batched for processing. 
D) the bank deposits the payments and accesses the customer's information system to record the payments. 
A) the bank is located nearby to the company,so remittance advices can be delivered to the company every day. 
B) several banks around the country are used,in order to minimize the time payments spend in the mail. 
C) an arrangement is made with only one bank,so all remittance advices can be batched for processing. 
D) the bank deposits the payments and accesses the customer's information system to record the payments.

Question 12

Discuss the advantage and disadvantage of the open-invoice method.

Accepted Answer

One advantage of the open-invoice method

Question 13

The shipping department at Eka Toys follows policies that determine which carrier will deliver orders according to the size,weight,and destination of the shipment.It maintains standing agreements with shippers that specify legal responsibility for the shipment while it is in transit.The terms of the shipping agreements are documented on

Accepted Answer

A) picking tickets. 
B) packing slips. 
C) bills of lading. 
D) RFID tags. 
A) picking tickets. 
B) packing slips. 
C) bills of lading. 
D) RFID tags.

Question 14

Identify a useful tool for monitoring accounts receivable.

Accepted Answer

A) ERP exception report 
B) accounts receivable aging report 
C) accounts receivable tolerance report 
D) customer credit limit report 
A) ERP exception report 
B) accounts receivable aging report 
C) accounts receivable tolerance report 
D) customer credit limit report

Question 15

Explain how validity checks,completeness tests and reasonableness tests can be implemented to ensure accuracy of customer orders.

Accepted Answer

Validity checks can be used to compare t

Question 16

When a customer places an order (on account)for a certain product,what should be done before the order is checked for inventory availability?

Accepted Answer

A) The customer's available credit should be checked. 
B) The sales order should be created and written to a file. 
C) Shipping should be notified of an order in process. 
D) A picking list should be generated for the warehouse. 
A) The customer's available credit should be checked. 
B) The sales order should be created and written to a file. 
C) Shipping should be notified of an order in process. 
D) A picking list should be generated for the warehouse.

Question 17

Which of the following controls can minimize the threat of failure to bill?

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 18

How can Electronic Data Interchange (EDI)facilitate the billing and accounts receivable process?

Accepted Answer

The basic document created in the billin

Question 19

The manager of Callow Youth Clothing was entering an order online from Sad Clown Pajamas.He ordered 100 one-size fits all pajama bottoms,but when he ordered 1000 one-size fits all pajama tops,the following error message popped up: "Did you mean to enter a quantity of 1000 for your order?" This message is the result of a

Accepted Answer

A) reasonableness test. 
B) validity check. 
C) limit check. 
D) closed-loop verification. 
A) reasonableness test. 
B) validity check. 
C) limit check. 
D) closed-loop verification.

Question 20

If a firm uses an ERP,the best way to mitigate the risk of the destruction of master data is to

Accepted Answer

A) frequently update the ERP system. 
B) implement the ERP system in three separate instances. 
C) periodically audit the ERP system. 
D) integrate the ERP system with all IT functions. 
A) frequently update the ERP system. 
B) implement the ERP system in three separate instances. 
C) periodically audit the ERP system. 
D) integrate the ERP system with all IT functions.

The activities involved in soliciting and processing customer orders within the revenue cycle are known as the

Which of the decisions below is not ordinarily found as part of the revenue cycle?

For strongest segregation of duties,the credit manager should never report to

Upon notification from the receiving department that the goods have been returned,the manager issues a(n)________ ,which authorizes the adjustment of the customer's account.

Customers that send their payments electronically directly to the billing company's bank are using

The bill of lading is a legal contract that defines responsibility for the goods in the company's warehouse.

Which of the following controls can minimize the threat of theft of inventory?

Separating the shipping and billing functions is designed to reduce the threat of

Key differences exist when an integrated Enterprise Resource Planning system (ERP)replaces an existing AIS or legacy system.For example,________ are more accurate and timely,enabling sales order entry staff to provide customers more accurate information about delivery dates.

Two documents usually accompany goods shipped to a customer.What are the two documents?

The benefits of a lockbox arrangement with a bank are maximized when

Discuss the advantage and disadvantage of the open-invoice method.

Identify a useful tool for monitoring accounts receivable.

Explain how validity checks,completeness tests and reasonableness tests can be implemented to ensure accuracy of customer orders.

When a customer places an order (on account)for a certain product,what should be done before the order is checked for inventory availability?

Which of the following controls can minimize the threat of failure to bill?

How can Electronic Data Interchange (EDI)facilitate the billing and accounts receivable process?

If a firm uses an ERP,the best way to mitigate the risk of the destruction of master data is to

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

Exam 12: The Revenue Cycle: Sales to Cash Collections

The activities involved in soliciting and processing customer orders within the revenue cycle are known as the

Which of the decisions below is not ordinarily found as part of the revenue cycle?

For strongest segregation of duties,the credit manager should never report to

Upon notification from the receiving department that the goods have been returned,the manager issues a(n)________ ,which authorizes the adjustment of the customer's account.

Customers that send their payments electronically directly to the billing company's bank are using

The bill of lading is a legal contract that defines responsibility for the goods in the company's warehouse.

Which of the following controls can minimize the threat of theft of inventory?

Separating the shipping and billing functions is designed to reduce the threat of

Key differences exist when an integrated Enterprise Resource Planning system (ERP)replaces an existing AIS or legacy system.For example,________ are more accurate and timely,enabling sales order entry staff to provide customers more accurate information about delivery dates.

Two documents usually accompany goods shipped to a customer.What are the two documents?

The benefits of a lockbox arrangement with a bank are maximized when

Discuss the advantage and disadvantage of the open-invoice method.

Identify a useful tool for monitoring accounts receivable.

Explain how validity checks,completeness tests and reasonableness tests can be implemented to ensure accuracy of customer orders.

When a customer places an order (on account)for a certain product,what should be done before the order is checked for inventory availability?

Which of the following controls can minimize the threat of failure to bill?

How can Electronic Data Interchange (EDI)facilitate the billing and accounts receivable process?

If a firm uses an ERP,the best way to mitigate the risk of the destruction of master data is to

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