Question 1

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

Accepted Answer

Cycle billing is spreading out the customer base so that a portion of the billing is done each day to a group of customers.Credit card and utility companies use it extensively because of their large customer bases.The advantage of this method is that the billing load is dispersed and the cash flow of the company is evened out dramatically.

Question 2

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. A

Question 3

A way to incorporate the advantages of Electronic Data Interchange with the Electronic Funds Transfer is

Accepted Answer

A)  Financial Electronic Data Interchange. 
B)  e-commerce. 
C)  to use procurement cards. 
D)  an electronic lockbox. 
A)  Financial Electronic Data Interchange. 
B)  e-commerce. 
C)  to use procurement cards. 
D)  an electronic lockbox. A

Question 4

The cashier deposits checks for Benedek Incorporated and also prepares payments to vendors.Of the following,who is best able to reconcile the bank statement to Benedek's records on a regular basis?

Accepted Answer

A)  cashier 
B)  internal audit department 
C)  treasurer 
D)  external auditor 
A)  cashier 
B)  internal audit department 
C)  treasurer 
D)  external auditor

Question 5

The least effective control for preventing an organization from processing fraudulent credit memo is to

Accepted Answer

A)  match each credit memo with a receiving report. 
B)  require approval for each credit memo by the credit manager. 
C)  reconcile total of credit memos to total debits posted to customers' subsidiary ledgers. 
D)  sequentially prenumber all credit memos and perform a sequence check at the end of each day. 
A)  match each credit memo with a receiving report. 
B)  require approval for each credit memo by the credit manager. 
C)  reconcile total of credit memos to total debits posted to customers' subsidiary ledgers. 
D)  sequentially prenumber all credit memos and perform a sequence check at the end of each day.

Question 6

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 7

A picking ticket is generated by the

Accepted Answer

A)  shipping process. 
B)  sales order entry process. 
C)  packing process. 
D)  billing process. 
A)  shipping process. 
B)  sales order entry process. 
C)  packing process. 
D)  billing process.

Question 8

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 9

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 10

A credit sale should always be reviewed by a credit manager if it exceeds the customer's credit limit.

Accepted Answer

A) True 
 B)False

Question 11

Basic segregation of duties requires the credit manager reports to the ________ and the treasurer report to the ________.

Accepted Answer

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

Question 12

Define and describe benefits of a CRM system.

Accepted Answer

CRM stands for customer relationship man

Question 13

By using an ERP to merge the billing,sales,and marketing functions,the firm may be able to

Accepted Answer

A)  bill the customer right after the sale occurs. 
B)  market products and services on bills sent to customers. 
C)  use customer's past purchase history to send information about related products and services the customer may be interested in. 
D)  eliminate the need for a firm to have a billing, sales, and marketing department. 
A)  bill the customer right after the sale occurs. 
B)  market products and services on bills sent to customers. 
C)  use customer's past purchase history to send information about related products and services the customer may be interested in. 
D)  eliminate the need for a firm to have a billing, sales, and marketing department.

Question 14

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 15

Matching customer account numbers and inventory item numbers to the numbers in the customer and inventory master files is an example of a

Accepted Answer

A)  completeness test. 
B)  field check. 
C)  reasonableness test. 
D)  validity check. 
A)  completeness test. 
B)  field check. 
C)  reasonableness test. 
D)  validity check.

Question 16

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

Question 17

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 18

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

Accepted Answer

Stockouts,carrying costs,and markdowns a

Question 19

Research suggests which of the following is key to improving total customer satisfaction?

Accepted Answer

A)  price of product 
B)  speed of shipping 
C)  quality and nature of customer contact after the sale 
D)  quality and nature of customer contact before the sale 
A)  price of product 
B)  speed of shipping 
C)  quality and nature of customer contact after the sale 
D)  quality and nature of customer contact before the sale

Question 20

The legitimacy of customer orders is established by ________ in Internet-based customer orders.

Accepted Answer

A)  digital signatures 
B)  the customer's pin number 
C)  the customer's credit card number 
D)  prior experience with the customer 
A)  digital signatures 
B)  the customer's pin number 
C)  the customer's credit card number 
D)  prior experience with the customer

Exam 12: The Revenue Cycle: Sales to Cash Collections

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

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

A way to incorporate the advantages of Electronic Data Interchange with the Electronic Funds Transfer is

The cashier deposits checks for Benedek Incorporated and also prepares payments to vendors.Of the following,who is best able to reconcile the bank statement to Benedek's records on a regular basis?

The least effective control for preventing an organization from processing fraudulent credit memo is to

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

A picking ticket is generated by the

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

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

A credit sale should always be reviewed by a credit manager if it exceeds the customer's credit limit.

Basic segregation of duties requires the credit manager reports to the ________ and the treasurer report to the ________.

Define and describe benefits of a CRM system.

By using an ERP to merge the billing,sales,and marketing functions,the firm may be able to

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

Matching customer account numbers and inventory item numbers to the numbers in the customer and inventory master files is an example of a

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

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

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

Research suggests which of the following is key to improving total customer satisfaction?

The legitimacy of customer orders is established by ________ in Internet-based customer orders.

Accounting Information Systems: an Overview

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

Basic segregation of duties requires the credit manager reports to the and the treasurer report to the .