Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Good internal controls in the revenue cycle should ensure all of the following except

Accepted Answer

A)  all sales are profitable 
B)  all sales are recorded 
C)  credit is authorized 
D)  inventory to be shipped is not stolen 
A)  all sales are profitable 
B)  all sales are recorded 
C)  credit is authorized 
D)  inventory to be shipped is not stolen

Question 3

The data processing method that can shorten the cash cycle is

Accepted Answer

A)  batch,sequential file processing 
B)  batch,direct access file processing 
C)  real-time file processing 
D)  none of the above 
A)  batch,sequential file processing 
B)  batch,direct access file processing 
C)  real-time file processing 
D)  none of the above

Question 4

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 5

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 6

Warehouse stock records are the formal accounting records for inventory.

Accepted Answer

A) True 
 B)False

Question 7

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 8

What is automation and why is it used?

Accepted Answer

Automation involves using technology to

Question 9

Usually specific authorization is required for all of the following except

Accepted Answer

A)  sales on account which exceed the credit limit 
B)  sales of goods at the list price 
C)  a cash refund for goods returned without a receipt 
D)  write off of an uncollectible account receivable 
A)  sales on account which exceed the credit limit 
B)  sales of goods at the list price 
C)  a cash refund for goods returned without a receipt 
D)  write off of an uncollectible account receivable

Question 10

What is the role of the shipping notice?

Accepted Answer

The shipping notice triggers the billing

Question 11

Physical controls are imbedded in computer systems to control access to data.

Accepted Answer

A) True 
 B)False

Question 12

A customer payment of $247 was correctly posted in the general ledger but was recorded as $274 in the customer's account receivable.Describe a specific internal control procedure that would detect this error.

Accepted Answer

Reconcile the accounts receiva

Question 13

The stock release copy of the sales order is not used to

Accepted Answer

A)  locate and pick the items from the warehouse shelves 
B)  record any out-of-stock items 
C)  authorize the warehouse clerk to release custody of the inventory to shipping 
D)  record the reduction of inventory 
A)  locate and pick the items from the warehouse shelves 
B)  record any out-of-stock items 
C)  authorize the warehouse clerk to release custody of the inventory to shipping 
D)  record the reduction of inventory

Question 14

What function does the receiving department serve in the revenue cycle?

Accepted Answer

The receiving department counts and insp

Question 15

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

Accepted Answer

Shipping verifies that the goods sent fr

Question 16

The warehouse is responsible for updating the inventory subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 17

In an integrated cash receipts system,which of the following is not a task of the mail room clerk?

Accepted Answer

A)  Prepare deposit slips 
B)  Open envelopes 
C)  Prepare remittance list 
D)  Make bank deposit 
A)  Prepare deposit slips 
B)  Open envelopes 
C)  Prepare remittance list 
D)  Make bank deposit

Question 18

What specific internal control procedure would detect the misplacement of a sales invoice after preparation and not mailed to the customer? The invoice was never found.

Accepted Answer

All docume

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

Good internal controls in the revenue cycle should ensure all of the following except

The data processing method that can shorten the cash cycle is

Internal controls for handling sales returns and allowances do not include

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

Warehouse stock records are the formal accounting records for inventory.

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.

What is automation and why is it used?

Usually specific authorization is required for all of the following except

What is the role of the shipping notice?

Physical controls are imbedded in computer systems to control access to data.

A customer payment of $247 was correctly posted in the general ledger but was recorded as $274 in the customer's account receivable.Describe a specific internal control procedure that would detect this error.

The stock release copy of the sales order is not used to

What function does the receiving department serve in the revenue cycle?

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

The warehouse is responsible for updating the inventory subsidiary ledger.

In an integrated cash receipts system,which of the following is not a task of the mail room clerk?

What specific internal control procedure would detect the misplacement of a sales invoice after preparation and not mailed to the customer? The invoice was never found.

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

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

Good internal controls in the revenue cycle should ensure all of the following except

The data processing method that can shorten the cash cycle is

Internal controls for handling sales returns and allowances do not include

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

Warehouse stock records are the formal accounting records for inventory.

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.

What is automation and why is it used?

Usually specific authorization is required for all of the following except

What is the role of the shipping notice?

Physical controls are imbedded in computer systems to control access to data.

A customer payment of $247 was correctly posted in the general ledger but was recorded as $274 in the customer's account receivable.Describe a specific internal control procedure that would detect this error.

The stock release copy of the sales order is not used to

What function does the receiving department serve in the revenue cycle?

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

The warehouse is responsible for updating the inventory subsidiary ledger.

In an integrated cash receipts system,which of the following is not a task of the mail room clerk?

What specific internal control procedure would detect the misplacement of a sales invoice after preparation and not mailed to the customer? The invoice was never found.

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