Question 1

How is EDI more than technology? What unique control problems may it pose?

Accepted Answer

EDI represents a unique business arrange

Question 2

In real-time processing systems,routine credit authorizations are automated.

Accepted Answer

A) True 
 B)False

Question 3

For the revenue cycle,state two specific independent verifications that should be performed.

Accepted Answer

Shipping verifies that the goods sent fr

Question 4

At which point is supervision most critical in the cash receipts system?

Accepted Answer

A) accounts receivable 
B) general ledger 
C) mail room 
D) cash receipts 
A) accounts receivable 
B) general ledger 
C) mail room 
D) cash receipts

Question 5

What are the key segregation of duties related to computer programs that process accounting transactions?

Accepted Answer

The tasks of design,maintenance,and oper

Question 6

What is a bill of lading?

Accepted Answer

The bill of lading is a formal contract

Question 7

The shipping notice

Accepted Answer

A) is mailed to the customer 
B) is a formal contract between the seller and the shipping company 
C) is always prepared by the shipping clerk 
D) informs the billing department of the quantities shipped 
A) is mailed to the customer 
B) is a formal contract between the seller and the shipping company 
C) is always prepared by the shipping clerk 
D) informs the billing department of the quantities shipped

Question 8

The printer ran out of preprinted sales invoice forms and several sales invoices were not printed.The best internal control to detect this error is

Accepted Answer

A) a batch total of sales invoices to be prepared compared to the actual number of sales invoices prepared 
B) sequentially numbered sales invoices 
C) visual verification that all sales invoices were prepared 
D) none of the above will detect this error 
A) a batch total of sales invoices to be prepared compared to the actual number of sales invoices prepared 
B) sequentially numbered sales invoices 
C) visual verification that all sales invoices were prepared 
D) none of the above will detect this error

Question 9

Which situation indicates a weak internal control structure?

Accepted Answer

A) the mail room clerk authorizes credit memos 
B) the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers 
C) the warehouse clerk obtains a signature before releasing goods for shipment 
D) the accounts receivable clerk prepares customer statements every month 
A) the mail room clerk authorizes credit memos 
B) the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers 
C) the warehouse clerk obtains a signature before releasing goods for shipment 
D) the accounts receivable clerk prepares customer statements every month

Question 10

The purpose of the invoice is to bill the customer.

Accepted Answer

A) True 
 B)False

Question 11

The revenue cycle consists of

Accepted Answer

A) one subsystem-order entry 
B) two subsystems-sales order processing and cash receipts 
C) two subsystems-order entry and inventory control 
D) three subsystems-sales order processing, credit authorization, and cash receipts 
A) one subsystem-order entry 
B) two subsystems-sales order processing and cash receipts 
C) two subsystems-order entry and inventory control 
D) three subsystems-sales order processing, credit authorization, and cash receipts

Question 12

Integrated accounting systems automatically transfer data between modules.

Accepted Answer

A) True 
 B)False

Question 13

All of the following are advantages of real-time processing of sales except

Accepted Answer

A) The cash cycle is shortened 
B) Paperwork is reduced 
C) Incorrect data entry is difficult to detect 
D) Up-to-date information can provide a competitive advantage in the marketplace 
A) The cash cycle is shortened 
B) Paperwork is reduced 
C) Incorrect data entry is difficult to detect 
D) Up-to-date information can provide a competitive advantage in the marketplace

Question 14

Periodically,the general ledger department receives all of the following except

Accepted Answer

A) total increases to accounts receivable 
B) total of all sales backorders 
C) total of all sales 
D) total decreases in inventory 
A) total increases to accounts receivable 
B) total of all sales backorders 
C) total of all sales 
D) total decreases in inventory

Question 15

The most effective internal control procedure to prevent or detect the creation of fictitious credit memoranda for sales returns is to

Accepted Answer

A) supervise the accounts receivable department 
B) limit access to credit memoranda 
C) prenumber and sequence check all credit memoranda 
D) require management approval for all credit memoranda 
A) supervise the accounts receivable department 
B) limit access to credit memoranda 
C) prenumber and sequence check all credit memoranda 
D) require management approval for all credit memoranda

Question 16

Which of the following is not a risk exposure in a PC accounting system?

Accepted Answer

A) reliance on paper documentation is increased 
B) functions that are segregated in a manual environment may be combined in a computer accounting system 
C) backup procedures require human intervention 
D) data are easily accessible 
A) reliance on paper documentation is increased 
B) functions that are segregated in a manual environment may be combined in a computer accounting system 
C) backup procedures require human intervention 
D) data are easily accessible

Question 17

What is automation and why is it used?

Accepted Answer

Automation involves using technology to

Question 18

The bill of lading is a legal contract between the buyer and the seller.

Accepted Answer

A) True 
 B)False

Question 19

What task can the accounts receivable department engage in to verify that all checks sent by customers have been appropriately deposited and recorded?

Accepted Answer

The company should periodically,perhaps

Question 20

Which document is included with a shipment sent to a customer?

Accepted Answer

A) sales invoice 
B) stock release form 
C) packing slip 
D) shipping notice 
A) sales invoice 
B) stock release form 
C) packing slip 
D) shipping notice

How is EDI more than technology? What unique control problems may it pose?

In real-time processing systems,routine credit authorizations are automated.

For the revenue cycle,state two specific independent verifications that should be performed.

At which point is supervision most critical in the cash receipts system?

What are the key segregation of duties related to computer programs that process accounting transactions?

What is a bill of lading?

The shipping notice

The printer ran out of preprinted sales invoice forms and several sales invoices were not printed.The best internal control to detect this error is

Which situation indicates a weak internal control structure?

The purpose of the invoice is to bill the customer.

The revenue cycle consists of

Integrated accounting systems automatically transfer data between modules.

All of the following are advantages of real-time processing of sales except

Periodically,the general ledger department receives all of the following except

The most effective internal control procedure to prevent or detect the creation of fictitious credit memoranda for sales returns is to

Which of the following is not a risk exposure in a PC accounting system?

What is automation and why is it used?

The bill of lading is a legal contract between the buyer and the seller.

What task can the accounts receivable department engage in to verify that all checks sent by customers have been appropriately deposited and recorded?

Which document is included with a shipment sent to a customer?

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

How is EDI more than technology? What unique control problems may it pose?

In real-time processing systems,routine credit authorizations are automated.

For the revenue cycle,state two specific independent verifications that should be performed.

At which point is supervision most critical in the cash receipts system?

What are the key segregation of duties related to computer programs that process accounting transactions?

What is a bill of lading?

The shipping notice

The printer ran out of preprinted sales invoice forms and several sales invoices were not printed.The best internal control to detect this error is

Which situation indicates a weak internal control structure?

The purpose of the invoice is to bill the customer.

The revenue cycle consists of

Integrated accounting systems automatically transfer data between modules.

All of the following are advantages of real-time processing of sales except

Periodically,the general ledger department receives all of the following except

The most effective internal control procedure to prevent or detect the creation of fictitious credit memoranda for sales returns is to

Which of the following is not a risk exposure in a PC accounting system?

What is automation and why is it used?

The bill of lading is a legal contract between the buyer and the seller.

What task can the accounts receivable department engage in to verify that all checks sent by customers have been appropriately deposited and recorded?

Which document is included with a shipment sent to a customer?

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