Question 1

Accounting recognizes a sale when

Accepted Answer

A)  inventory becomes the legal property of the customer. 
B)  cash is received from the customer. 
C)  a sales order is approved by sales, inventory control, and credit departments. 
D)  inventory is removed from the warehouse. 
A)  inventory becomes the legal property of the customer. 
B)  cash is received from the customer. 
C)  a sales order is approved by sales, inventory control, and credit departments. 
D)  inventory is removed from the warehouse.

Question 2

Describe cycle billing and identify how an organization might benefit by using cycle billing.

Accepted Answer

Cycle billing is spreading out the custo

Question 3

In the revenue cycle,before a shipping notice is prepared,the shipping department personnel should match the inventory received from the warehouse to details from

Accepted Answer

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

Question 4

A document typically encountered in the revenue cycle that is both an output document and a source document is the

Accepted Answer

A)  sales invoice. 
B)  customer purchase order. 
C)  sales order. 
D)  packing slip. 
A)  sales invoice. 
B)  customer purchase order. 
C)  sales order. 
D)  packing slip.

Question 5

Responding to customer inquiries and general customer service is an important aspect in the revenue cycle.Since customer service is so important,software programs have been created to help manage this function.These special software packages are called

Accepted Answer

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

Question 6

Define and describe benefits of a CRM system.

Accepted Answer

CRM stands for customer relationship man

Question 7

In organizations with at least basic segregation of duties,the credit manager reports to the ________ and the treasurer reports to the ________.

Accepted Answer

A)  controller; vice president of finance 
B)  treasurer; controller 
C)  marketing manager; vice president of finance 
D)  treasurer; vice president of finance 
A)  controller; vice president of finance 
B)  treasurer; controller 
C)  marketing manager; vice president of finance 
D)  treasurer; vice president of finance

Question 8

An arrangement where a bank receives customer payments through the postal system,scans the remittance advices,and transmits payment data to the business electronically is known as

Accepted Answer

A)  e-commerce. 
B)  an electronic lockbox. 
C)  electronic funds transfer (EFT). 
D)  electronic data interchange (EDI). 
A)  e-commerce. 
B)  an electronic lockbox. 
C)  electronic funds transfer (EFT). 
D)  electronic data interchange (EDI).

Question 9

This document is a legal contract that defines responsibility for goods that are in transit.

Accepted Answer

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

Question 10

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 11

In Petaluma,California,electric power is provided to consumers by the Power To The People Electrical Company,a local co-op.Each month PTTP mails bills to 70,000 households and then processes payments as they are received.The customers are provided with a remittance advice,which is a

Accepted Answer

A)  warning that failure to pay by the due date will result in a late charge. 
B)  confirmation of the firm's privacy policy. 
C)  turnaround document. 
D)  bill. 
A)  warning that failure to pay by the due date will result in a late charge. 
B)  confirmation of the firm's privacy policy. 
C)  turnaround document. 
D)  bill.

Question 12

The best solution for maintaining accurate automated perpetual inventory system is to use

Accepted Answer

A)  closed-loop verification when inventory is received from vendors and recorded. 
B)  point of sale devices integrated with inventory records. 
C)  periodic physical counts to reconcile with perpetual inventory records. 
D)  RFID tags. 
A)  closed-loop verification when inventory is received from vendors and recorded. 
B)  point of sale devices integrated with inventory records. 
C)  periodic physical counts to reconcile with perpetual inventory records. 
D)  RFID tags.

Question 13

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

Accepted Answer

Answers can include the following inform

Question 14

All of the following edit checks for online editing of accounts receivable transactions would probably be included except

Accepted Answer

A)  validity checks on customer ID and invoice numbers. 
B)  check digit verification on the amount of the sale. 
C)  closed loop verification on the customer ID. 
D)  field checks on the values in dollar fields. 
A)  validity checks on customer ID and invoice numbers. 
B)  check digit verification on the amount of the sale. 
C)  closed loop verification on the customer ID. 
D)  field checks on the values in dollar fields.

Question 15

Which is the best control to prevent invoicing customers for the quantity ordered,which was more than the quantity shipped due to items on backorder?

Accepted Answer

A)  Use the information from the packing slip to prepare the sales invoice. 
B)  Use the information from the picking ticket to prepare the sales invoice. 
C)  Use the information from the bill of lading to prepare the sales invoice. 
D)  Use the information from the sales order to prepare the sales invoice. 
A)  Use the information from the packing slip to prepare the sales invoice. 
B)  Use the information from the picking ticket to prepare the sales invoice. 
C)  Use the information from the bill of lading to prepare the sales invoice. 
D)  Use the information from the sales order to prepare the sales invoice.

Question 16

To ensure proper segregation of duties,only the ________ has authority to issue credit memos.

Accepted Answer

A)  accounts receivable supervisor 
B)  controller 
C)  credit manager 
D)  cashier 
A)  accounts receivable supervisor 
B)  controller 
C)  credit manager 
D)  cashier

Question 17

What is the primary objective of the revenue cycle?

Accepted Answer

A)  to maximize revenue and minimize expense 
B)  to reduce outstanding accounts receivable balances through increased cash sales 
C)  to provide the right product in the right place at the right time at the right price 
D)  to sell as much product as possible and/or to maximize service billings 
A)  to maximize revenue and minimize expense 
B)  to reduce outstanding accounts receivable balances through increased cash sales 
C)  to provide the right product in the right place at the right time at the right price 
D)  to sell as much product as possible and/or to maximize service billings

Question 18

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 19

During the sales order entry process,a ________ is performed to verify that each transaction record contains all appropriate data items.

Accepted Answer

A)  completeness test 
B)  redundant data check 
C)  field check 
D)  reasonableness test 
A)  completeness test 
B)  redundant data check 
C)  field check 
D)  reasonableness test

Question 20

Retail stores could send their orders directly to the manufacturer's sales order system in a format that would eliminate the need for data entry,using

Accepted Answer

A)  Vendor Managed Inventory. 
B)  Electronic Data Interchange. 
C)  Point Of Sale. 
D)  Electronic Funds Transfer. 
A)  Vendor Managed Inventory. 
B)  Electronic Data Interchange. 
C)  Point Of Sale. 
D)  Electronic Funds Transfer.

Exam 12: The Revenue Cycle: Sales to Cash Collections

Accounting recognizes a sale when

Describe cycle billing and identify how an organization might benefit by using cycle billing.

In the revenue cycle,before a shipping notice is prepared,the shipping department personnel should match the inventory received from the warehouse to details from

A document typically encountered in the revenue cycle that is both an output document and a source document is the

Responding to customer inquiries and general customer service is an important aspect in the revenue cycle.Since customer service is so important,software programs have been created to help manage this function.These special software packages are called

Define and describe benefits of a CRM system.

In organizations with at least basic segregation of duties,the credit manager reports to the ________ and the treasurer reports to the ________.

An arrangement where a bank receives customer payments through the postal system,scans the remittance advices,and transmits payment data to the business electronically is known as

This document is a legal contract that defines responsibility for goods that are in transit.

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

In Petaluma,California,electric power is provided to consumers by the Power To The People Electrical Company,a local co-op.Each month PTTP mails bills to 70,000 households and then processes payments as they are received.The customers are provided with a remittance advice,which is a

The best solution for maintaining accurate automated perpetual inventory system is to use

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

All of the following edit checks for online editing of accounts receivable transactions would probably be included except

Which is the best control to prevent invoicing customers for the quantity ordered,which was more than the quantity shipped due to items on backorder?

To ensure proper segregation of duties,only the ________ has authority to issue credit memos.

What is the primary objective of 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.

During the sales order entry process,a ________ is performed to verify that each transaction record contains all appropriate data items.

Retail stores could send their orders directly to the manufacturer's sales order system in a format that would eliminate the need for data entry,using

Accounting Information Systems: an Overview

Overview of Transaction Processing and Erp Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Information Systems Controls for System Reliability Part 1: Information Security

Information Systems Controls for Systems Reliability Part 2: Confidentiality and Privacy

Information Systems Controls for Systems Reliability Part 3: Processing Integrity and Availability

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

The Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

In organizations with at least basic segregation of duties,the credit manager reports to the and the treasurer reports to the .