Question 1

Warehouse stock records are the formal accounting records for inventory.

Accepted Answer

A) True 
 B)False

Question 2

The warehouse is responsible for updating the inventory subsidiary ledger.

Accepted Answer

A) True 
 B)False

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

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

Accepted Answer

A) True 
 B)False

Question 5

Which of following functions should be segregated?

Accepted Answer

A)  opening the mail and making the journal entry to record cash receipts 
B)  authorizing credit and determining reorder quantities 
C)  maintaining the subsidiary ledgers and handling customer queries 
D)  providing information on inventory levels and reconciling the bank statement 
A)  opening the mail and making the journal entry to record cash receipts 
B)  authorizing credit and determining reorder quantities 
C)  maintaining the subsidiary ledgers and handling customer queries 
D)  providing information on inventory levels and reconciling the bank statement

Question 6

Copies of the sales order can be used for all of the following except

Accepted Answer

A)  purchase order 
B)  credit authorization 
C)  shipping notice 
D)  packing slip 
A)  purchase order 
B)  credit authorization 
C)  shipping notice 
D)  packing slip

Question 7

The customer open order file is used to

Accepted Answer

A)  respond to customer queries 
B)  fill the customer order 
C)  ship the customer order 
D)  authorize customer credit 
A)  respond to customer queries 
B)  fill the customer order 
C)  ship the customer order 
D)  authorize customer credit

Question 8

Describe two common methods for achieving multilevel security.

Accepted Answer

Two common methods for achieving multile

Question 9

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

Question 10

What unique control problems does EDI pose?

Accepted Answer

EDI poses unique control problems for or

Question 11

In an integrated cash receipts system, the cash receipts clerk reconciles the checks and the remittance advices and prepares deposit slips.

Accepted Answer

A) True 
 B)False

Question 12

A weekly reconciliation of cash receipts would include comparing

Accepted Answer

A)  the cash prelist with bank deposit slips 
B)  the cash prelist with remittance advices 
C)  bank deposit slips with remittance advices 
D)  journal vouchers from accounts receivable and general ledger 
A)  the cash prelist with bank deposit slips 
B)  the cash prelist with remittance advices 
C)  bank deposit slips with remittance advices 
D)  journal vouchers from accounts receivable and general ledger

Question 13

A credit sale is made to a customer, even though the customer's account is four months overdue. Describe a specific internal control procedure that would prevent this from happening.

Accepted Answer

Perform a credit che

Question 14

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger. Describe a specific internal control procedure that would prevent this fraud.

Accepted Answer

Segregation of duties. Do not

Question 15

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 16

Multilevel security employs programmed techniques that permit simultaneous access to a central system by many users with different access privileges but allows them to obtaining information for which they lack authorization.

Accepted Answer

A) True 
 B)False

Question 17

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 18

What does EDI technology do?

Accepted Answer

EDI technology was devised to

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

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

Warehouse stock records are the formal accounting records for inventory.

The warehouse is responsible for updating the inventory subsidiary ledger.

The data processing method that can shorten the cash cycle is

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

Which of following functions should be segregated?

Copies of the sales order can be used for all of the following except

The customer open order file is used to

Describe two common methods for achieving multilevel security.

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

What unique control problems does EDI pose?

In an integrated cash receipts system, the cash receipts clerk reconciles the checks and the remittance advices and prepares deposit slips.

A weekly reconciliation of cash receipts would include comparing

A credit sale is made to a customer, even though the customer's account is four months overdue. Describe a specific internal control procedure that would prevent this from happening.

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger. Describe a specific internal control procedure that would prevent this fraud.

Which journal is not used in the revenue cycle?

Multilevel security employs programmed techniques that permit simultaneous access to a central system by many users with different access privileges but allows them to obtaining information for which they lack authorization.

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

What does EDI technology do?

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

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

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

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

Warehouse stock records are the formal accounting records for inventory.

The warehouse is responsible for updating the inventory subsidiary ledger.

The data processing method that can shorten the cash cycle is

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

Which of following functions should be segregated?

Copies of the sales order can be used for all of the following except

The customer open order file is used to

Describe two common methods for achieving multilevel security.

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

What unique control problems does EDI pose?

In an integrated cash receipts system, the cash receipts clerk reconciles the checks and the remittance advices and prepares deposit slips.

A weekly reconciliation of cash receipts would include comparing

A credit sale is made to a customer, even though the customer's account is four months overdue. Describe a specific internal control procedure that would prevent this from happening.

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger. Describe a specific internal control procedure that would prevent this fraud.

Which journal is not used in the revenue cycle?

Multilevel security employs programmed techniques that permit simultaneous access to a central system by many users with different access privileges but allows them to obtaining information for which they lack authorization.

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

What does EDI technology do?

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

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

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

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