Question 1

Requesting a signed purchase order form from the customer prior to accepting a sale can reduce the risk of:

Accepted Answer

A) Non-payment 
B) Insufficient finished goods inventory available 
C) Fictitious sales 
D) Poor decision 
A) Non-payment 
B) Insufficient finished goods inventory available 
C) Fictitious sales 
D) Poor decision C

Question 2

Which of the following documents is not generated in the revenue cycle?

Accepted Answer

A) Sales order 
B) Shipping notice 
C) Bill of lading 
D) Purchase requisition 
A) Sales order 
B) Shipping notice 
C) Bill of lading 
D) Purchase requisition D

Question 3

Which of the following is NOT true regarding sales orders?

Accepted Answer

A) The sales order forms the basis for subsequent billing of the customer. 
B) The actual billing of the customer can occur prior to goods dispatch. 
C) The sales order is a document that is internal to the organisation,it is necessary for it to be produced in paper form so that hardcopy evidence can be kept. 
D) The creation of the sales order is accomplished by inputting all the details relating to the customer and the products,then generating a sequentially numbered sales order. 
A) The sales order forms the basis for subsequent billing of the customer. 
B) The actual billing of the customer can occur prior to goods dispatch. 
C) The sales order is a document that is internal to the organisation,it is necessary for it to be produced in paper form so that hardcopy evidence can be kept. 
D) The creation of the sales order is accomplished by inputting all the details relating to the customer and the products,then generating a sequentially numbered sales order. C

Question 4

Determining cash collection policies and procedures needs knowledge of: (i)average payment times (ii)industry standards (iii)customer credit policies (iv)legal requirements (v)the degree of customer tolerance.

Accepted Answer

A) (i)(ii)(iv)only 
B) (ii)(iii)(iv)only 
C) (i)(ii)(iii)(iv)only 
D) (i)(ii)(iii)(iv)(v) 
A) (i)(ii)(iv)only 
B) (ii)(iii)(iv)only 
C) (i)(ii)(iii)(iv)only 
D) (i)(ii)(iii)(iv)(v)

Question 5

What are the risks associated with the dispatch of goods and how can these risks be controlled?

Accepted Answer

There is a risk of goods being labeled i

Question 6

Give at least four examples of operation level decisions in the revenue cycle.

Accepted Answer

There are a range of operational level d

Question 7

Which of the following activities is not involved in preparing and the sending the goods to customers?

Accepted Answer

A) Pick goods 
B) Prepare goods for shipping 
C) Deliver goods 
D) Update inventory record 
A) Pick goods 
B) Prepare goods for shipping 
C) Deliver goods 
D) Update inventory record

Question 8

To reduce the risk of allowing an order to proceed when goods are not available or rejecting an order when goods are available,it is important to:

Accepted Answer

A) maintain accurate and timely perpetual inventory records and periodically conduct physical inventory checks. 
B) maintain accurate and timely perpetual inventory records and constantly conduct physical inventory checks. 
C) maintain accurate and timely periodic inventory records and periodically conduct physical inventory checks. 
D) maintain accurate and timely periodic inventory records and constantly conduct physical inventory checks. 
A) maintain accurate and timely perpetual inventory records and periodically conduct physical inventory checks. 
B) maintain accurate and timely perpetual inventory records and constantly conduct physical inventory checks. 
C) maintain accurate and timely periodic inventory records and periodically conduct physical inventory checks. 
D) maintain accurate and timely periodic inventory records and constantly conduct physical inventory checks.

Question 9

Which document triggers the picking of goods?

Accepted Answer

A) Sales order only 
B) Picking ticket only 
C) Either sales order or picking ticket 
D) Neither sales order nor picking ticket 
A) Sales order only 
B) Picking ticket only 
C) Either sales order or picking ticket 
D) Neither sales order nor picking ticket

Question 10

A bespoke link that enables exchange of data between two separate computer systems and that is used when transaction flow and volume is large and transaction syntax is predictable is referred to as:

Accepted Answer

A) ERP 
B) EDI 
C) XML 
D) CRM 
A) ERP 
B) EDI 
C) XML 
D) CRM

Question 11

Give at least three examples of strategy level decisions in the revenue cycle.

Accepted Answer

Strategy level decisions are typically m

Question 12

Which of the following activities is not involved in processing the sales order?

Accepted Answer

A) Check customer credit 
B) Create sales order 
C) Check inventory levels 
D) Bill the customer 
A) Check customer credit 
B) Create sales order 
C) Check inventory levels 
D) Bill the customer

Question 13

KPI stands for

Accepted Answer

A) Key process indicator 
B) Key performance indicator 
C) Key progress index 
D) Key performance index 
A) Key process indicator 
B) Key performance indicator 
C) Key progress index 
D) Key performance index

Question 14

There is a risk that payments received will be incorrectly recorded against the customer accounts.What techniques can be used to control this potential problem?

Accepted Answer

To control this potential problem it is

Question 15

Which of the following information is needed to determine the creditworthiness of a customer?

Accepted Answer

A) Credit limit. 
B) Credit availability. 
C) Details of recent sales that are not yet recorded in the customer's accounts receivable account. 
D) All of the options are correct. 
A) Credit limit. 
B) Credit availability. 
C) Details of recent sales that are not yet recorded in the customer's accounts receivable account. 
D) All of the options are correct.

Question 16

Ideally,customer data should be produced by a dedicated customer management section of an organisation.This customer management section is NOT responsible for:

Accepted Answer

A) Identifying and authorising new customers 
B) Identifying and authorising existing customers 
C) Assigning and reviewing customer credit limits 
D) Securing preferential pricing for customers. 
A) Identifying and authorising new customers 
B) Identifying and authorising existing customers 
C) Assigning and reviewing customer credit limits 
D) Securing preferential pricing for customers.

Question 17

The objective of the sales phase in the revenue cycle is to:

Accepted Answer

A) Effectively conduct sales and arrange the prompt supply of goods and services. 
B) Effectively conduct sales. 
C) Effectively conduct,record,and monitor sales and arrange the prompt supply of goods and services. 
D) Effectively conduct,record,and monitor sales. 
A) Effectively conduct sales and arrange the prompt supply of goods and services. 
B) Effectively conduct sales. 
C) Effectively conduct,record,and monitor sales and arrange the prompt supply of goods and services. 
D) Effectively conduct,record,and monitor sales.

Question 18

Online banking:

Accepted Answer

A) Improves security and cash flows 
B) Improves security but has no impact on cash flows 
C) Improves transparency as well as eliminating the need for reconciliation of transactions 
D) Increases data entry costs but reduces error rates. 
A) Improves security and cash flows 
B) Improves security but has no impact on cash flows 
C) Improves transparency as well as eliminating the need for reconciliation of transactions 
D) Increases data entry costs but reduces error rates.

Question 19

What are the three pieces of information required during credit check and how do they contribute to credit check decisions?

Accepted Answer

A credit check requires three separate p

Question 20

Which of the following statement regarding the receipt of cheques is true?

Accepted Answer

A) Cheques received should be stamped or endorsed immediately. 
B) Cheques received should be receipted and deposited by the accounts receivable clerk. 
C) Cheques need not be separated from the remittance advice. 
D) Cheques should be receipted and deposited by the accounts payable clerk. 
A) Cheques received should be stamped or endorsed immediately. 
B) Cheques received should be receipted and deposited by the accounts receivable clerk. 
C) Cheques need not be separated from the remittance advice. 
D) Cheques should be receipted and deposited by the accounts payable clerk.

Requesting a signed purchase order form from the customer prior to accepting a sale can reduce the risk of:

Which of the following documents is not generated in the revenue cycle?

Which of the following is NOT true regarding sales orders?

Determining cash collection policies and procedures needs knowledge of: (i)average payment times (ii)industry standards (iii)customer credit policies (iv)legal requirements (v)the degree of customer tolerance.

What are the risks associated with the dispatch of goods and how can these risks be controlled?

Give at least four examples of operation level decisions in the revenue cycle.

Which of the following activities is not involved in preparing and the sending the goods to customers?

To reduce the risk of allowing an order to proceed when goods are not available or rejecting an order when goods are available,it is important to:

Which document triggers the picking of goods?

A bespoke link that enables exchange of data between two separate computer systems and that is used when transaction flow and volume is large and transaction syntax is predictable is referred to as:

Give at least three examples of strategy level decisions in the revenue cycle.

Which of the following activities is not involved in processing the sales order?

KPI stands for

There is a risk that payments received will be incorrectly recorded against the customer accounts.What techniques can be used to control this potential problem?

Which of the following information is needed to determine the creditworthiness of a customer?

Ideally,customer data should be produced by a dedicated customer management section of an organisation.This customer management section is NOT responsible for:

The objective of the sales phase in the revenue cycle is to:

Online banking:

What are the three pieces of information required during credit check and how do they contribute to credit check decisions?

Which of the following statement regarding the receipt of cheques is true?

Systems Fundamentals

Systems Characteristics and Considerations

Database Concepts I

Database Concepts II

XBRL Reporting

System Mapping and Documentation

Internal Controls I

Internal Controls II

Transaction Cycle The Expenditure Cycle

Transaction Cycle The Production Cycle

Transaction Cycle The HR Management and Payroll Cycle

Transaction Cycle The General Ledger and Financial Reporting Cycle

Systems Development

Auditing of Accounting Information Systems

Ethics, fraud and Computer Crime

Filters

Exam 9: Transaction Cycle The Revenue Cycle

Requesting a signed purchase order form from the customer prior to accepting a sale can reduce the risk of:

Which of the following documents is not generated in the revenue cycle?

Which of the following is NOT true regarding sales orders?

Determining cash collection policies and procedures needs knowledge of: (i)average payment times (ii)industry standards (iii)customer credit policies (iv)legal requirements (v)the degree of customer tolerance.

What are the risks associated with the dispatch of goods and how can these risks be controlled?

Give at least four examples of operation level decisions in the revenue cycle.

Which of the following activities is not involved in preparing and the sending the goods to customers?

To reduce the risk of allowing an order to proceed when goods are not available or rejecting an order when goods are available,it is important to:

Which document triggers the picking of goods?

A bespoke link that enables exchange of data between two separate computer systems and that is used when transaction flow and volume is large and transaction syntax is predictable is referred to as:

Give at least three examples of strategy level decisions in the revenue cycle.

Which of the following activities is not involved in processing the sales order?

KPI stands for

There is a risk that payments received will be incorrectly recorded against the customer accounts.What techniques can be used to control this potential problem?

Which of the following information is needed to determine the creditworthiness of a customer?

Ideally,customer data should be produced by a dedicated customer management section of an organisation.This customer management section is NOT responsible for:

The objective of the sales phase in the revenue cycle is to:

Online banking:

What are the three pieces of information required during credit check and how do they contribute to credit check decisions?

Which of the following statement regarding the receipt of cheques is true?

Systems Fundamentals

Systems Characteristics and Considerations

Database Concepts I

Database Concepts II

XBRL Reporting

System Mapping and Documentation

Internal Controls I

Internal Controls II

Transaction Cycle The Expenditure Cycle

Transaction Cycle The Production Cycle

Transaction Cycle The HR Management and Payroll Cycle

Transaction Cycle The General Ledger and Financial Reporting Cycle

Systems Development

Auditing of Accounting Information Systems

Ethics, fraud and Computer Crime

Filters