Question 1

What makes point-of-sale systems different from revenue cycles of manufacturing firms?

Accepted Answer

In point-of-sale systems,the customer literally has possession of the items purchased,thus the inventory is in hand.Typically,for manufacturing firms,the order is placed and the good is shipped to the customer at some later time period.Thus,updating inventory at the time of sale is necessary in point-of-sale systems since the inventory is changing hands,while it is not necessary in manufacturing firms until the goods are actually shipped to the customer.
Also,POS systems are used extensively in grocery stores,department stores,and other types of retail organizations.Generally,only cash,checks,and bank credit card sales are valid.Unlike manufacturing firms,the organization maintains no customer accounts receivable.Unlike some manufacturing firms,inventory is kept on the store's shelves,not in a separate warehouse.The customers personally pick the items they wish to buy and carry them to the checkout location,where the transaction begins.Shipping,packing,bills of lading,etc.are not relevant to POS systems.

Question 2

Which document is not prepared by the sales department?

Accepted Answer

A) packing slip 
B) shipping notice 
C) bill of lading 
D) stock release 
A) packing slip 
B) shipping notice 
C) bill of lading 
D) stock release C

Question 3

A cash prelist is

Accepted Answer

A) a document that records sales returns and allowances 
B) a document returned by customers with their payments 
C) the source of information used to prepare monthly statements 
D) none of the above 
A) a document that records sales returns and allowances 
B) a document returned by customers with their payments 
C) the source of information used to prepare monthly statements 
D) none of the above D

Question 4

Commercial accounting systems have fully integrated modules.The word "integrated" means that

Accepted Answer

A) segregation of duties is not possible 
B) transfer of information among modules occurs automatically 
C) batch processing is not an option 
D) separate entries are made in the general ledger accounts and the subsidiary ledgers 
A) segregation of duties is not possible 
B) transfer of information among modules occurs automatically 
C) batch processing is not an option 
D) separate entries are made in the general ledger accounts and the subsidiary ledgers

Question 5

The credit department

Accepted Answer

A) prepares credit memos when goods are returned 
B) approves credits to accounts receivable when payments are received 
C) authorizes the granting of credit to customers 
D) none of the above 
A) prepares credit memos when goods are returned 
B) approves credits to accounts receivable when payments are received 
C) authorizes the granting of credit to customers 
D) none of the above

Question 6

A bill of lading is a request for payment for shipping charges.

Accepted Answer

A) True 
 B)False

Question 7

A weekly reconciliation of cash receipts would include comparing

Accepted Answer

A) the cash prelist with bank deposit slips 
B) the cash prelist with remittance advices 
C) bank deposit slips with remittance advices 
D) journal vouchers from accounts receivable and general ledger 
A) the cash prelist with bank deposit slips 
B) the cash prelist with remittance advices 
C) bank deposit slips with remittance advices 
D) journal vouchers from accounts receivable and general ledger

Question 8

Describe the key tasks in the sales order process.

Accepted Answer

Sales order procedures include the tasks

Question 9

Distinguish between a packing slip,shipping notice,and a bill of lading.

Accepted Answer

The packing slip travels with the goods

Question 10

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger.Describe a specific internal control procedure that would prevent this fraud.

Accepted Answer

Segregation of duties would prevent this

Question 11

For each of the following documents,describe its purpose,the functional area preparing it,and the key data included: sales order,bill of lading,credit memo.

Accepted Answer

A sales order is used to collect informa

Question 12

A remittance advice is a form of turnaround document.

Accepted Answer

A) True 
 B)False

Question 13

A written customer purchase order is required to trigger the sales order system.

Accepted Answer

A) True 
 B)False

Question 14

The cash receipts journal is a special journal.

Accepted Answer

A) True 
 B)False

Question 15

With regard to segregation of duties,rule two is that asset custody and record keeping should be separated.What does this require in the revenue cycle?

Accepted Answer

In the revenue cycle,the warehouse has c

Question 16

In a computerized accounting system,segregation of functions refers to inventory control,accounts receivable,billing,and general ledger tasks.

Accepted Answer

A) True 
 B)False

Question 17

In an integrated cash receipts system,the cash receipts clerk reconciles the checks and the remittance advices and prepares deposit slips.

Accepted Answer

A) True 
 B)False

Question 18

How may an employee embezzle funds by issuing an unauthorized sales credit memo if the appropriate segregation of functions and authorization controls were not in place?

Accepted Answer

An employee who has access to incoming p

Question 19

State two specific functions or jobs that should be segregated in the cash receipts system.

Accepted Answer

cash receipts (custody)from ac

Question 20

A remittance advice is

Accepted Answer

A) used to increase (debit) an account receivable by the cash received 
B) is a turnaround document 
C) is retained by the customer to show proof of payment 
D) none of the above 
A) used to increase (debit) an account receivable by the cash received 
B) is a turnaround document 
C) is retained by the customer to show proof of payment 
D) none of the above

What makes point-of-sale systems different from revenue cycles of manufacturing firms?

Which document is not prepared by the sales department?

A cash prelist is

Commercial accounting systems have fully integrated modules.The word "integrated" means that

The credit department

A bill of lading is a request for payment for shipping charges.

A weekly reconciliation of cash receipts would include comparing

Describe the key tasks in the sales order process.

Distinguish between a packing slip,shipping notice,and a bill of lading.

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger.Describe a specific internal control procedure that would prevent this fraud.

For each of the following documents,describe its purpose,the functional area preparing it,and the key data included: sales order,bill of lading,credit memo.

A remittance advice is a form of turnaround document.

A written customer purchase order is required to trigger the sales order system.

The cash receipts journal is a special journal.

With regard to segregation of duties,rule two is that asset custody and record keeping should be separated.What does this require in the revenue cycle?

In a computerized accounting system,segregation of functions refers to inventory control,accounts receivable,billing,and general ledger tasks.

In an integrated cash receipts system,the cash receipts clerk reconciles the checks and the remittance advices and prepares deposit slips.

How may an employee embezzle funds by issuing an unauthorized sales credit memo if the appropriate segregation of functions and authorization controls were not in place?

State two specific functions or jobs that should be segregated in the cash receipts system.

A remittance advice is

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

Filters

Exam 4: The Revenue Cycle

What makes point-of-sale systems different from revenue cycles of manufacturing firms?

Which document is not prepared by the sales department?

A cash prelist is

Commercial accounting systems have fully integrated modules.The word "integrated" means that

The credit department

A bill of lading is a request for payment for shipping charges.

A weekly reconciliation of cash receipts would include comparing

Describe the key tasks in the sales order process.

Distinguish between a packing slip,shipping notice,and a bill of lading.

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger.Describe a specific internal control procedure that would prevent this fraud.

For each of the following documents,describe its purpose,the functional area preparing it,and the key data included: sales order,bill of lading,credit memo.

A remittance advice is a form of turnaround document.

A written customer purchase order is required to trigger the sales order system.

The cash receipts journal is a special journal.

With regard to segregation of duties,rule two is that asset custody and record keeping should be separated.What does this require in the revenue cycle?

In a computerized accounting system,segregation of functions refers to inventory control,accounts receivable,billing,and general ledger tasks.

In an integrated cash receipts system,the cash receipts clerk reconciles the checks and the remittance advices and prepares deposit slips.

How may an employee embezzle funds by issuing an unauthorized sales credit memo if the appropriate segregation of functions and authorization controls were not in place?

State two specific functions or jobs that should be segregated in the cash receipts system.

A remittance advice is

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

Filters