Question 1

What is a CRM system?

Accepted Answer

CRM stands for customer relationship man

Question 2

Laz Chance wears roller blades and headphones when he is at work at the Squishy Things Toy Company.He is a product packer.The headphones give him computer-generated instructions so he knows the location of each item and quantity that should be included in the order.He encloses a paper form in the box when the order is complete.The form is called a

Accepted Answer

A) picking ticket. 
B) bill of lading. 
C) packing slip. 
D) remittance advice. 
E) credit memo. 
A) picking ticket. 
B) bill of lading. 
C) packing slip. 
D) remittance advice. 
E) credit memo.

Question 3

Sad Clown Pajamas is an Internet-based wholesaler.Customers enter their orders online.The manager of Callow Youth Clothing was entering an order when 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) validity check. 
B) reasonableness test. 
C) limit check. 
D) completeness test. 
A) validity check. 
B) reasonableness test. 
C) limit check. 
D) completeness test.

Question 4

In a cash collection system with proper controls,the __________ function,responsible to the __________,is separate and distinct from the cash handling activities.

Accepted Answer

A) accounts receivable; treasurer 
B) accounts receivable; controller 
C) cashier; controller 
D) cashier; treasurer 
A) accounts receivable; treasurer 
B) accounts receivable; controller 
C) cashier; controller 
D) cashier; treasurer

Question 5

To prevent the loss of valuable data in the revenue cycle,internal file labels can be used to

Accepted Answer

A) keep competitors from accessing files. 
B) record off-site storage locations. 
C) organize the on-site physical storage site. 
D) reduce the possibility of erasing important files. 
A) keep competitors from accessing files. 
B) record off-site storage locations. 
C) organize the on-site physical storage site. 
D) reduce the possibility of erasing important files.

Question 6

To ensure proper separation of duties the __________ makes decisions concerning issuance of credit memos.

Accepted Answer

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

Question 7

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 and invoice numbers. 
B) check digit verification on the amount of the sale. 
C) closed loop verification on the customer name to ensure the proper account is being updated. 
D) field checks on the values in dollar fields. 
A) validity checks on customer and invoice numbers. 
B) check digit verification on the amount of the sale. 
C) closed loop verification on the customer name to ensure the proper account is being updated. 
D) field checks on the values in dollar fields.

Question 8

During the sales order entry process,a __________ is performed to compare the quantity ordered with the standard amounts normally ordered.

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 9

A __________ system spreads out the monthly statements to customers over the entire month with the idea being that the processing load and cash flow will be more even.

Accepted Answer

A) closed invoice 
B) open invoice 
C) cycle billing 
D) balance forward 
A) closed invoice 
B) open invoice 
C) cycle billing 
D) balance forward

Question 10

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

Accepted Answer

A) bill of lading 
B) freight bill 
C) sales order 
D) order acknowledgement 
A) bill of lading 
B) freight bill 
C) sales order 
D) order acknowledgement

Question 11

To accomplish the objectives set forth in the revenue cycle,a number of key management decisions must be addressed.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 12

Which of the following poses an internal control problem?

Accepted Answer

A) Credit memos are approved by the Sales Manager. 
B) Disbursements of cash are approved by the Finance Manager. 
C) Raw material deliveries are compared with the relevant purchase orders clerks in the Shipping and Receiving Department. 
D) Bank accounts are reconciled by the Finance Department. 
A) Credit memos are approved by the Sales Manager. 
B) Disbursements of cash are approved by the Finance Manager. 
C) Raw material deliveries are compared with the relevant purchase orders clerks in the Shipping and Receiving Department. 
D) Bank accounts are reconciled by the Finance Department.

Question 13

The maximum allowable account balance for a given customer is called the

Accepted Answer

A) credit checkpoint. 
B) credit limit. 
C) reorder point. 
D) backorder point. 
A) credit checkpoint. 
B) credit limit. 
C) reorder point. 
D) backorder point.

Question 14

Poor performance in the area of cash collections is a threat to the business.What controls can be used to help neutralize this threat?

Accepted Answer

Both accounts receivable and cash flows

Question 15

In the revenue cycle,a customer places an order for a certain product.Before the order is checked for inventory availability,what step should be taken?

Accepted Answer

A) The customer's credit should be checked for a sale on account. 
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 credit should be checked for a sale on account. 
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 16

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 17

A serious exposure for an organization that is connected with the revenue cycle is the loss of assets.What is the related threat and applicable control procedure association with this exposure?

Accepted Answer

A) shipping errors; reconciliation of sales order with picking ticket and packing slip 
B) theft of cash; segregation of duties and minimization of cash handling 
C) loss of data; backup and recovery procedures 
D) poor performance; preparation and review of performance reports 
A) shipping errors; reconciliation of sales order with picking ticket and packing slip 
B) theft of cash; segregation of duties and minimization of cash handling 
C) loss of data; backup and recovery procedures 
D) poor performance; preparation and review of performance reports

Question 18

The Squishy Things Toy Company was established in 1948.It recently signed a large contract with a chain of retail toy stores.As a condition of the contract,the Squishy will be required to track and forecast product sales by linking in to the chain's sales database.Squishy will then be responsible for shipping products to the chain's regional warehouses as needed.The technology that is used for communication between Squishy and the chain is

Accepted Answer

A) vendor-managed inventory. 
B) sales force automation. 
C) electronic data interchange. 
D) optical character recognition. 
A) vendor-managed inventory. 
B) sales force automation. 
C) electronic data interchange. 
D) optical character recognition.

Question 19

Using the _______ method,customers typically pay a sales invoice that reflects a single transaction,referred to as a _______.

Accepted Answer

A) open invoice; monthly statement 
B) open invoice; remittance advice 
C) balance-forward; monthly statement 
D) balance-forward; remittance advice 
A) open invoice; monthly statement 
B) open invoice; remittance advice 
C) balance-forward; monthly statement 
D) balance-forward; remittance advice

Question 20

How is credit approval generally handled for well-established customers with a documented payment history?

Accepted Answer

A) specific authorization by the credit manager 
B) routine approval is usually granted 
C) a new credit application is taken 
D) a formal credit check is made for each sale 
A) specific authorization by the credit manager 
B) routine approval is usually granted 
C) a new credit application is taken 
D) a formal credit check is made for each sale

What is a CRM system?

Sad Clown Pajamas is an Internet-based wholesaler.Customers enter their orders online.The manager of Callow Youth Clothing was entering an order when 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

In a cash collection system with proper controls,the function,responsible to the ,is separate and distinct from the cash handling activities.

To prevent the loss of valuable data in the revenue cycle,internal file labels can be used to

To ensure proper separation of duties the __________ makes decisions concerning issuance of credit memos.

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

During the sales order entry process,a __________ is performed to compare the quantity ordered with the standard amounts normally ordered.

A __________ system spreads out the monthly statements to customers over the entire month with the idea being that the processing load and cash flow will be more even.

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

To accomplish the objectives set forth in the revenue cycle,a number of key management decisions must be addressed.Which of the decisions below is not ordinarily found as part of the revenue cycle?

Which of the following poses an internal control problem?

The maximum allowable account balance for a given customer is called the

Poor performance in the area of cash collections is a threat to the business.What controls can be used to help neutralize this threat?

In the revenue cycle,a customer places an order for a certain product.Before the order is checked for inventory availability,what step should be taken?

The credit manager reports to the and the treasurer reports to the .

A serious exposure for an organization that is connected with the revenue cycle is the loss of assets.What is the related threat and applicable control procedure association with this exposure?

Using the _ method,customers typically pay a sales invoice that reflects a single transaction,referred to as a _.

How is credit approval generally handled for well-established customers with a documented payment history?

Accounting Information Systems

Overview of Business Processes

Systems Development and Documentation Techniques

Relational Databases

Computer Fraud and Security

Control and Accounting Information Systems

Infromation System Controls for Systems Reliability

Auditing Computer-Based Information Systems

Auditing Computer-Based Informtion Systems

The Expenditure Cycle: Purchasing and Cash Disbursements

The Production Cycle

The Human Resources Managementpayroll Cycle

General Ledger and Reporting System

Data Modeling and Database Design

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 10: The Revenue Cycle: Sales an Cash Collections

What is a CRM system?

Sad Clown Pajamas is an Internet-based wholesaler.Customers enter their orders online.The manager of Callow Youth Clothing was entering an order when 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

In a cash collection system with proper controls,the __________ function,responsible to the __________,is separate and distinct from the cash handling activities.

To prevent the loss of valuable data in the revenue cycle,internal file labels can be used to

To ensure proper separation of duties the __________ makes decisions concerning issuance of credit memos.

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

During the sales order entry process,a __________ is performed to compare the quantity ordered with the standard amounts normally ordered.

A __________ system spreads out the monthly statements to customers over the entire month with the idea being that the processing load and cash flow will be more even.

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

To accomplish the objectives set forth in the revenue cycle,a number of key management decisions must be addressed.Which of the decisions below is not ordinarily found as part of the revenue cycle?

Which of the following poses an internal control problem?

The maximum allowable account balance for a given customer is called the

Poor performance in the area of cash collections is a threat to the business.What controls can be used to help neutralize this threat?

In the revenue cycle,a customer places an order for a certain product.Before the order is checked for inventory availability,what step should be taken?

The credit manager reports to the __________ and the treasurer reports to the __________.

A serious exposure for an organization that is connected with the revenue cycle is the loss of assets.What is the related threat and applicable control procedure association with this exposure?

Using the _______ method,customers typically pay a sales invoice that reflects a single transaction,referred to as a _______.

How is credit approval generally handled for well-established customers with a documented payment history?

Accounting Information Systems

Overview of Business Processes

Systems Development and Documentation Techniques

Relational Databases

Computer Fraud and Security

Control and Accounting Information Systems

Infromation System Controls for Systems Reliability

Auditing Computer-Based Information Systems

Auditing Computer-Based Informtion Systems

The Expenditure Cycle: Purchasing and Cash Disbursements

The Production Cycle

The Human Resources Managementpayroll Cycle

General Ledger and Reporting System

Data Modeling and Database Design

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

In a cash collection system with proper controls,the function,responsible to the ,is separate and distinct from the cash handling activities.

The credit manager reports to the and the treasurer reports to the .

Using the _ method,customers typically pay a sales invoice that reflects a single transaction,referred to as a _.