Question 1

The billing department is not responsible for

Accepted Answer

A)  updating the inventory subsidiary records 
B)  recording the sale in the sales journal 
C)  notifying accounts receivable of the sale 
D)  sending the invoice to the customer 
A)  updating the inventory subsidiary records 
B)  recording the sale in the sales journal 
C)  notifying accounts receivable of the sale 
D)  sending the invoice to the customer

Question 2

What makes point-of-sale systems different from revenue cycles of manufacturing firms?

Accepted Answer

In point-of-sale systems, the customer l

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The packing slip is also known as the shipping notice.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

The tasks of design, maintenance, and op

Question 6

A bill of lading is a request for payment for shipping charges.

Accepted Answer

A) True 
 B)False

Question 7

A remittance advice is

Accepted Answer

A)  used to increase (debit) an account receivable by the cash received 
B)  is a turn-around document 
C)  is retained by the customer to show proof of payment 
D)  none of the above 
A)  used to increase (debit) an account receivable by the cash received 
B)  is a turn-around document 
C)  is retained by the customer to show proof of payment 
D)  none of the above

Question 8

The shipping notice

Accepted Answer

A)  is mailed to the customer 
B)  is a formal contract between the seller and the shipping company 
C)  is always prepared by the shipping clerk 
D)  informs the billing department of the quantities shipped 
A)  is mailed to the customer 
B)  is a formal contract between the seller and the shipping company 
C)  is always prepared by the shipping clerk 
D)  informs the billing department of the quantities shipped

Question 9

Describe a credit check in an advanced technology system.

Accepted Answer

In an advanced technology system, the sy

Question 10

The principal source document in the sales order system is the sales order.

Accepted Answer

A) True 
 B)False

Question 11

Give three examples of Access Control in a Point-of-Sale (POS) system.

Accepted Answer

- Lock on the cash drawer
- Internal cas

Question 12

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 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

The bill of lading is a legal contract between the buyer and the seller.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

The reconciliation that occurs in the shipping department is intended to ensure that

Accepted Answer

A)  credit has been approved 
B)  the customer is billed for the exact quantity shipped 
C)  the goods shipped match the goods ordered 
D)  inventory records are reduced for the goods shipped 
A)  credit has been approved 
B)  the customer is billed for the exact quantity shipped 
C)  the goods shipped match the goods ordered 
D)  inventory records are reduced for the goods shipped

Question 18

With regard to segregation of duties, rule two is that asset custody and record keeping should be separated. What does this require in the revenue cycle?

Accepted Answer

In the revenue cycle, the warehouse has

Question 19

Which situation indicates a weak internal control structure?

Accepted Answer

A)  the mailroom clerk authorizes credit memos 
B)  the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers 
C)  the warehouse clerk obtains a signature before releasing goods for shipment 
D)  the accounts receivable clerk prepares customer statements every month 
A)  the mailroom clerk authorizes credit memos 
B)  the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers 
C)  the warehouse clerk obtains a signature before releasing goods for shipment 
D)  the accounts receivable clerk prepares customer statements every month

Question 20

What specific internal control procedure would prevent the sale of goods on account to a fictitious customer?

Accepted Answer

The answer of What specific internal control procedure would prevent...

The billing department is not responsible for

What makes point-of-sale systems different from revenue cycles of manufacturing firms?

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

The packing slip is also known as the shipping notice.

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

A bill of lading is a request for payment for shipping charges.

A remittance advice is

The shipping notice

Describe a credit check in an advanced technology system.

The principal source document in the sales order system is the sales order.

Give three examples of Access Control in a Point-of-Sale (POS) system.

Internal controls for handling sales returns and allowances do not include

EDI trading partner agreements specify all of the following except

The bill of lading is a legal contract between the buyer and the seller.

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.

Usually specific authorization is required for all of the following except

The reconciliation that occurs in the shipping department is intended to ensure that

With regard to segregation of duties, rule two is that asset custody and record keeping should be separated. What does this require in the revenue cycle?

Which situation indicates a weak internal control structure?

What specific internal control procedure would prevent the sale of goods on account to a fictitious customer?

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

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Exam 4: The Revenue Cycle

The billing department is not responsible for

What makes point-of-sale systems different from revenue cycles of manufacturing firms?

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

The packing slip is also known as the shipping notice.

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

A bill of lading is a request for payment for shipping charges.

A remittance advice is

The shipping notice

Describe a credit check in an advanced technology system.

The principal source document in the sales order system is the sales order.

Give three examples of Access Control in a Point-of-Sale (POS) system.

Internal controls for handling sales returns and allowances do not include

EDI trading partner agreements specify all of the following except

The bill of lading is a legal contract between the buyer and the seller.

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.

Usually specific authorization is required for all of the following except

The reconciliation that occurs in the shipping department is intended to ensure that

With regard to segregation of duties, rule two is that asset custody and record keeping should be separated. What does this require in the revenue cycle?

Which situation indicates a weak internal control structure?

What specific internal control procedure would prevent the sale of goods on account to a fictitious customer?

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