Exam 4: The Revenue Cycle

The purpose of the invoice is to bill the customer.

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

Describe the key tasks in the sales order process.

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

The stock release document is prepared by the shipping department to provide evidence that the goods have been released to the customer.

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

What is the purpose of the credit memo?

In most large organizations, the journal voucher file has replaced the formal general journal.

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

What specific internal control procedure would prevent an accounts receivable clerk from issuing a fictitious credit memo to a customer (who is also a relative) for goods that were "supposedly" returned from previous sales?

A cash prelist is

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

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

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

An advantage of real-time processing of sales is

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?

In the revenue cycle, the internal control "limit access" applies to physical assets only.

State two specific functions or jobs that should be segregated in the sales processing system.

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

Sales orders should be prenumbered documents.