Question 1

The SAP ERP system requires a customer master record for each customer.A one-time customer of the company

Accepted Answer

A)  can be passed through the system by using a "dummy" customer master record. 
B)  should be manually billed using a 30-day account, thus bypassing the SAP ERP system. 
C)  must pay cash and pick up the goods from the company's shipping dock. 
D)  must be set up using detailed records in the SAP ERP system like any other customer. 
A)  can be passed through the system by using a "dummy" customer master record. 
B)  should be manually billed using a 30-day account, thus bypassing the SAP ERP system. 
C)  must pay cash and pick up the goods from the company's shipping dock. 
D)  must be set up using detailed records in the SAP ERP system like any other customer.

Question 2

The SEC Interpretive Guidance "Management's Report on Internal Control Over Financial Reporting" approved in 2007,focuses management on preventing and uncovering fraud.

Accepted Answer

A) True 
 B)False

Question 3

After an allowance has been authorized and approved,the credit department issues a credit memo to document the reduction in the customer's account.

Accepted Answer

A) True 
 B)False

Question 4

The distinction between ________ and ________ ________ is important to maintain separation of functions.

Accepted Answer

billing; a

Question 5

To maintain an adequate separation of duties,various functions within the customer order process should be independent of each other.An example of this is

Accepted Answer

A)  that billing does not have access to the accounts receivable ledger. 
B)  that shipping only accepts goods from finished goods that are identified on an independently prepared packing list. 
C)  Answers A and B are both correct. 
D)  None of these answers is correct. 
A)  that billing does not have access to the accounts receivable ledger. 
B)  that shipping only accepts goods from finished goods that are identified on an independently prepared packing list. 
C)  Answers A and B are both correct. 
D)  None of these answers is correct.

Question 6

What documents typically accompany the physical shipment of goods to a customer?

Accepted Answer

A)  The picking list and purchase order 
B)  Packing and picking lists 
C)  The packing list and a bill of lading 
D)  The sales order and an invoice 
A)  The picking list and purchase order 
B)  Packing and picking lists 
C)  The packing list and a bill of lading 
D)  The sales order and an invoice

Question 7

A goods-issued notice is the documentation exchanged between a shipper and a carrier such as a trucking company.

Accepted Answer

A) True 
 B)False

Question 8

Auditing standard No.5 describes a ________ approach to selecting controls to be tested.

Accepted Answer

A)  hybrid 
B)  bottom-up 
C)  top-down 
D)  This standard does not discuss the selection of controls to be tested. 
A)  hybrid 
B)  bottom-up 
C)  top-down 
D)  This standard does not discuss the selection of controls to be tested.

Question 9

The Jackson Supply Company recently started using a regional lock-box collection system.The controller for the company compared the float using the lock-box system with the float using the company's prior,one-location collection system.The controller found that the company was saving $2,600,000 in average float.The bank that provides the regional lock-box system requires that the company maintain a $500,000 compensating balance at all times.The bank also charges service fees of $120,000 annually.
Required: Calculate the percentage cost of net funds freed for Jackson Supply Company.

Accepted Answer

@#IMG-DLM&
$120,000 fees and e

Question 10

The validated deposit slip from a bank should be returned to the cash receipts department.

Accepted Answer

A) True 
 B)False

Question 11

Sarbanes-Oxley Act of 2002 requires companies maintain a(n)________ internal control structure over the business processes that support financial reporting.

Accepted Answer

The answer of Sarbanes-Oxley Act of 2002 requires companies maintain...

Question 12

A legal agreement,prepared before selling to customers as a matter of company policy,is a contract.

Accepted Answer

A) True 
 B)False

Question 13

In the SAP ERP system,all of the different master records are created when the

Accepted Answer

A)  payee customer record is created. 
B)  ship-to-customer record is created. 
C)  sold-to-customer record is created. 
D)  bill-to-customer record is created. 
A)  payee customer record is created. 
B)  ship-to-customer record is created. 
C)  sold-to-customer record is created. 
D)  bill-to-customer record is created.

Question 14

Describe the procedures for a sales return and explain how the procedures relate to the segregation of duties of authorization,custody of assets,and record keeping.

Accepted Answer

The customer returns goods for credit

Question 15

Risk assessment should evaluate identified risks of material misstatement due to fraud and controls intended to address the risk of management override of these controls.

Accepted Answer

A) True 
 B)False

Question 16

In the SAP ERP system,the "create customer" screen,which is used to input statistical and demographic data,is

Accepted Answer

A)  control data. 
B)  marketing. 
C)  unloading points. 
D)  initial. 
A)  control data. 
B)  marketing. 
C)  unloading points. 
D)  initial.

Question 17

A grocery store customer will be given a gallon of ice cream if his or her receipt has a red star stamped on it.The idea behind this technique from an accounting control standpoint is to

Accepted Answer

A)  promote the dairy industry's "Got Milk" campaign. 
B)  have the customer audit his or her cash receipt. 
C)  keep the customer happy. 
D)  Answers A and C are both correct. 
A)  promote the dairy industry's "Got Milk" campaign. 
B)  have the customer audit his or her cash receipt. 
C)  keep the customer happy. 
D)  Answers A and C are both correct.

Question 18

The business process used when there is an existing customer account balance is

Accepted Answer

A)  accounts receivable. 
B)  cash-received-on-account. 
C)  cash sales. 
D)  aged trial balance. 
A)  accounts receivable. 
B)  cash-received-on-account. 
C)  cash sales. 
D)  aged trial balance.

Question 19

Accounts receivable often represents the majority of an organization's working capital.

Accepted Answer

A) True 
 B)False

Question 20

Explain SOX compliance as this Act relates to the sales business process and the accounts receivable business process.

Accepted Answer

Both the sales business process and th

The SAP ERP system requires a customer master record for each customer.A one-time customer of the company

The SEC Interpretive Guidance "Management's Report on Internal Control Over Financial Reporting" approved in 2007,focuses management on preventing and uncovering fraud.

After an allowance has been authorized and approved,the credit department issues a credit memo to document the reduction in the customer's account.

The distinction between and is important to maintain separation of functions.

To maintain an adequate separation of duties,various functions within the customer order process should be independent of each other.An example of this is

What documents typically accompany the physical shipment of goods to a customer?

A goods-issued notice is the documentation exchanged between a shipper and a carrier such as a trucking company.

Auditing standard No.5 describes a ________ approach to selecting controls to be tested.

The validated deposit slip from a bank should be returned to the cash receipts department.

Sarbanes-Oxley Act of 2002 requires companies maintain a(n)________ internal control structure over the business processes that support financial reporting.

A legal agreement,prepared before selling to customers as a matter of company policy,is a contract.

In the SAP ERP system,all of the different master records are created when the

Describe the procedures for a sales return and explain how the procedures relate to the segregation of duties of authorization,custody of assets,and record keeping.

Risk assessment should evaluate identified risks of material misstatement due to fraud and controls intended to address the risk of management override of these controls.

In the SAP ERP system,the "create customer" screen,which is used to input statistical and demographic data,is

A grocery store customer will be given a gallon of ice cream if his or her receipt has a red star stamped on it.The idea behind this technique from an accounting control standpoint is to

The business process used when there is an existing customer account balance is

Accounts receivable often represents the majority of an organization's working capital.

Explain SOX compliance as this Act relates to the sales business process and the accounts receivable business process.

Accounting Information Systems: An Overview

Systems Techniques and Documentation

Ebusiness and Ecommerce

Transaction Processing and the Internal Control Process

Fraud Examination and Fraud Management

Information Systems Security

Electronic Data Processing Systems

Procurement and Human Resources Business Processes

The Production Business Process

Systems Planning, analysis, and Design

Systems Project Management, implementation, operation, control

Data Management Concepts

Auditing Information Technology

Filters

Exam 8: Revenue Cycle Processes

The SAP ERP system requires a customer master record for each customer.A one-time customer of the company

The SEC Interpretive Guidance "Management's Report on Internal Control Over Financial Reporting" approved in 2007,focuses management on preventing and uncovering fraud.

After an allowance has been authorized and approved,the credit department issues a credit memo to document the reduction in the customer's account.

The distinction between ________ and ________ ________ is important to maintain separation of functions.

To maintain an adequate separation of duties,various functions within the customer order process should be independent of each other.An example of this is

What documents typically accompany the physical shipment of goods to a customer?

A goods-issued notice is the documentation exchanged between a shipper and a carrier such as a trucking company.

Auditing standard No.5 describes a ________ approach to selecting controls to be tested.

The validated deposit slip from a bank should be returned to the cash receipts department.

Sarbanes-Oxley Act of 2002 requires companies maintain a(n)________ internal control structure over the business processes that support financial reporting.

A legal agreement,prepared before selling to customers as a matter of company policy,is a contract.

In the SAP ERP system,all of the different master records are created when the

Describe the procedures for a sales return and explain how the procedures relate to the segregation of duties of authorization,custody of assets,and record keeping.

Risk assessment should evaluate identified risks of material misstatement due to fraud and controls intended to address the risk of management override of these controls.

In the SAP ERP system,the "create customer" screen,which is used to input statistical and demographic data,is

A grocery store customer will be given a gallon of ice cream if his or her receipt has a red star stamped on it.The idea behind this technique from an accounting control standpoint is to

The business process used when there is an existing customer account balance is

Accounts receivable often represents the majority of an organization's working capital.

Explain SOX compliance as this Act relates to the sales business process and the accounts receivable business process.

Accounting Information Systems: An Overview

Systems Techniques and Documentation

Ebusiness and Ecommerce

Transaction Processing and the Internal Control Process

Fraud Examination and Fraud Management

Information Systems Security

Electronic Data Processing Systems

Procurement and Human Resources Business Processes

The Production Business Process

Systems Planning, analysis, and Design

Systems Project Management, implementation, operation, control

Data Management Concepts

Auditing Information Technology

Filters

The distinction between and is important to maintain separation of functions.