Question 1

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 2

Which of the following is NOT a common method for achieving multilevel security?

Accepted Answer

A)  Access control list 
B)  Application integrity 
C)  Role based access control 
D)  All of the above 
A)  Access control list 
B)  Application integrity 
C)  Role based access control 
D)  All of the above

Question 3

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 microcomputer 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 microcomputer accounting system 
C)  backup procedures require human intervention 
D)  data are easily accessible

Question 4

What role does each of the following departments play in the cash receipts subsystem: mail room,cash receipts,accounts receivable,and general ledger? Be complete.

Accepted Answer

The mail room receives the customer's pa

Question 5

A remittance advice is a form of turn-around document.

Accepted Answer

A) True 
 B)False

Question 6

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 7

In a manual system,the billing department is responsible for recording the sale in the sales journal.

Accepted Answer

A) True 
 B)False

Question 8

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 9

In a basic technology revenue cycle system,a robust passwold control policy should be implemented.

Accepted Answer

A) True 
 B)False

Question 10

The accounts receivable clerk destroys all invoices for sales made to members of her family and does not record the sale in the accounts receivable subsidiary ledger.Which procedure will not detect this fraud?

Accepted Answer

A)  prenumber and sequence check all invoices 
B)  reconcile the accounts receivable control to the accounts receivable subsidiary ledger 
C)  prepare monthly customer statements 
D)  reconcile total sales on account to the debits in the accounts receivable subsidiary ledger 
A)  prenumber and sequence check all invoices 
B)  reconcile the accounts receivable control to the accounts receivable subsidiary ledger 
C)  prepare monthly customer statements 
D)  reconcile total sales on account to the debits in the accounts receivable subsidiary ledger

Question 11

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

Accepted Answer

The stock release document (also called

Question 12

What specific internal control procedure would prevent an increase in sales returns since salesmen were placed on commission?

Accepted Answer

Customer credit shou

Question 13

Another name for the stock release form is the picking ticket.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

cash receipts (custody)from ac

Question 15

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 16

How is independent verification carried out in a manual revenue system?

Accepted Answer

Independent verification occurs in sever

Question 17

What specific internal control procedure would prevent the shipping clerk from taking goods from the storeroom and sending them to someone who had not placed an order?

Accepted Answer

Shipping clerk shoul

Question 18

Which document triggers the revenue cycle?

Accepted Answer

A)  the sales order 
B)  the customer purchase order 
C)  the sales invoice 
D)  the journal voucher 
A)  the sales order 
B)  the customer purchase order 
C)  the sales invoice 
D)  the journal voucher

Question 19

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

Question 20

Sales return involves receiving,sales,credit,and billing departments,but not accounts receivable.

Accepted Answer

A) True 
 B)False

The revenue cycle consists of

Which of the following is NOT a common method for achieving multilevel security?

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

What role does each of the following departments play in the cash receipts subsystem: mail room,cash receipts,accounts receivable,and general ledger? Be complete.

A remittance advice is a form of turn-around document.

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?

In a manual system,the billing department is responsible for recording the sale in the sales journal.

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

In a basic technology revenue cycle system,a robust passwold control policy should be implemented.

The accounts receivable clerk destroys all invoices for sales made to members of her family and does not record the sale in the accounts receivable subsidiary ledger.Which procedure will not detect this fraud?

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

What specific internal control procedure would prevent an increase in sales returns since salesmen were placed on commission?

Another name for the stock release form is the picking ticket.

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

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

How is independent verification carried out in a manual revenue system?

What specific internal control procedure would prevent the shipping clerk from taking goods from the storeroom and sending them to someone who had not placed an order?

Which document triggers the revenue cycle?

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

Sales return involves receiving,sales,credit,and billing departments,but not accounts receivable.

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

General Ledger,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

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters

Exam 4: The Revenue Cycle

The revenue cycle consists of

Which of the following is NOT a common method for achieving multilevel security?

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

What role does each of the following departments play in the cash receipts subsystem: mail room,cash receipts,accounts receivable,and general ledger? Be complete.

A remittance advice is a form of turn-around document.

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?

In a manual system,the billing department is responsible for recording the sale in the sales journal.

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

In a basic technology revenue cycle system,a robust passwold control policy should be implemented.

The accounts receivable clerk destroys all invoices for sales made to members of her family and does not record the sale in the accounts receivable subsidiary ledger.Which procedure will not detect this fraud?

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

What specific internal control procedure would prevent an increase in sales returns since salesmen were placed on commission?

Another name for the stock release form is the picking ticket.

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

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

How is independent verification carried out in a manual revenue system?

What specific internal control procedure would prevent the shipping clerk from taking goods from the storeroom and sending them to someone who had not placed an order?

Which document triggers the revenue cycle?

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

Sales return involves receiving,sales,credit,and billing departments,but not accounts receivable.

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

General Ledger,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

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters