Question 1

Sales orders should be prenumbered documents.

Accepted Answer

A) True 
 B)False

Question 2

Describe a credit check in an advanced technology system.

Accepted Answer

In an advanced technology system,the sys

Question 3

What is the purpose(s)of the stock release document?

Accepted Answer

The stock release document (also called

Question 4

Process controls are controls over the logic of the application.

Accepted Answer

A) True 
 B)False

Question 5

What does EDI technology do?

Accepted Answer

EDI technology was devised to

Question 6

Inventory control has physical custody of inventory.

Accepted Answer

A) True 
 B)False

Question 7

In point-of-sale systems,authorization takes the form of validation of credit card charges.

Accepted Answer

A) True 
 B)False

Question 8

Internal controls for handling sales returns and allowances do not include

Accepted Answer

A) computing bad debt expense using the percentage of credit sales 
B) verifying that the goods have been returned 
C) authorizing the credit memo by management 
D) using the original sales invoice to prepare the sales returns slip 
A) computing bad debt expense using the percentage of credit sales 
B) verifying that the goods have been returned 
C) authorizing the credit memo by management 
D) using the original sales invoice to prepare the sales returns slip

Question 9

The POS environment places both cash and inventory at risk.

Accepted Answer

A) True 
 B)False

Question 10

Adjustments to accounts receivable for payments received from customers is based upon

Accepted Answer

A) the customer's check 
B) the cash prelist 
C) the remittance advice that accompanies payment 
D) a memo prepared in the mail room 
A) the customer's check 
B) the cash prelist 
C) the remittance advice that accompanies payment 
D) a memo prepared in the mail room

Question 11

What are the three rules that ensure that no single employee or department processes a transaction in its entirety?

Accepted Answer

1.Transaction authorization should be se

Question 12

What role does each of the following departments play in the sales order processing subsystem: sales,credit,and shipping? Be complete.

Accepted Answer

The sales department receives the order

Question 13

EDI trading partner agreements specify all of the following except

Accepted Answer

A) selling price 
B) quantities to be sold 
C) payment terms 
D) person to authorize transactions 
A) selling price 
B) quantities to be sold 
C) payment terms 
D) person to authorize transactions

Question 14

What is the role of the shipping notice?

Accepted Answer

The shipping notice triggers the billing

Question 15

The warehouse is responsible for updating the inventory subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 16

Which journal is not used in the revenue cycle?

Accepted Answer

A) cash receipts journal 
B) sales journal 
C) purchases journal 
D) general journal 
A) cash receipts journal 
B) sales journal 
C) purchases journal 
D) general journal

Question 17

Warehouse stock records are the formal accounting records for inventory.

Accepted Answer

A) True 
 B)False

Question 18

Give three examples of access control in a point-of-sale (POS)system.

Accepted Answer

• Lock on the cash drawer
• Internal cas

Question 19

What are the benefits and risks of making Internet sales?

Accepted Answer

Internet sales opens an organization's d

Question 20

Which control does not help to ensure that accurate records are kept of customer accounts and inventory?

Accepted Answer

A) reconcile accounts receivable control to accounts receivable subsidiary 
B) authorize credit 
C) segregate custody of inventory from record keeping 
D) segregate record keeping duties of general ledger from accounts receivable 
A) reconcile accounts receivable control to accounts receivable subsidiary 
B) authorize credit 
C) segregate custody of inventory from record keeping 
D) segregate record keeping duties of general ledger from accounts receivable

Sales orders should be prenumbered documents.

Describe a credit check in an advanced technology system.

What is the purpose(s)of the stock release document?

Process controls are controls over the logic of the application.

What does EDI technology do?

Inventory control has physical custody of inventory.

In point-of-sale systems,authorization takes the form of validation of credit card charges.

Internal controls for handling sales returns and allowances do not include

The POS environment places both cash and inventory at risk.

Adjustments to accounts receivable for payments received from customers is based upon

What are the three rules that ensure that no single employee or department processes a transaction in its entirety?

What role does each of the following departments play in the sales order processing subsystem: sales,credit,and shipping? Be complete.

EDI trading partner agreements specify all of the following except

What is the role of the shipping notice?

The warehouse is responsible for updating the inventory subsidiary ledger.

Which journal is not used in the revenue cycle?

Warehouse stock records are the formal accounting records for inventory.

Give three examples of access control in a point-of-sale (POS)system.

What are the benefits and risks of making Internet sales?

Which control does not help to ensure that accurate records are kept of customer accounts and inventory?

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

Sales orders should be prenumbered documents.

Describe a credit check in an advanced technology system.

What is the purpose(s)of the stock release document?

Process controls are controls over the logic of the application.

What does EDI technology do?

Inventory control has physical custody of inventory.

In point-of-sale systems,authorization takes the form of validation of credit card charges.

Internal controls for handling sales returns and allowances do not include

The POS environment places both cash and inventory at risk.

Adjustments to accounts receivable for payments received from customers is based upon

What are the three rules that ensure that no single employee or department processes a transaction in its entirety?

What role does each of the following departments play in the sales order processing subsystem: sales,credit,and shipping? Be complete.

EDI trading partner agreements specify all of the following except

What is the role of the shipping notice?

The warehouse is responsible for updating the inventory subsidiary ledger.

Which journal is not used in the revenue cycle?

Warehouse stock records are the formal accounting records for inventory.

Give three examples of access control in a point-of-sale (POS)system.

What are the benefits and risks of making Internet sales?

Which control does not help to ensure that accurate records are kept of customer accounts and inventory?

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