Exam 8: Revenue and Cash Collection Processes and Controls

When a company sells items over the Internet, there are many IT risks.The risk of hardware and software failures that prevent website sales would be a(n):

The risks of e-commerce, or e-business, include all of the following, except:

The purpose of tracing sales invoices to shipping documents would be to provide evidence that:

A document completed to prepare a record of the sales return and to adjust the amount of the customer's credit status is called a(n):

You have graduated from college and decided to purchase and operate a Macaroni and Cheese Food Tuck, a rage in your town .You would accept cash and credit card payments, which would be handled primarily by your servers.You also plan to offer unique dishes and specials to differentiate yourself from competitors. You are trying to launch the business with minimal investment.Your sister has recently graduated with an MBA in Accounting and argues that you must minimally invest in a Point of Sale system. Identify some advantages and disadvantages of investing in a POS system as part of this new business venture. What internal controls should be implemented to reduce the risk of theft or error related to the handling of cash, credit card payments, and coupons?

The business processes that are common in company-to-company sales business types include all of the following, except:

The separation of the custody of inventory from the accounts receivable record keeping will help to minimize the related risk of:

Which of the following is a risk that may affect the revenue and cash collection process?

This document is prepared on a regular basis to accumulated and summarize all the transactions that have taken place between the customer and the company within the period.

The separation of the responsibility for custody of cash from the responsibility for reconciling the bank accounts will help to minimize the related risk of:

Which of the following two terms both refer to the same document?

The preparation of deposit slips on prenumbered forms will help to minimize the related risk of:

This type of highly integrated IT system processes sales at a cash register in retail stores.

Bank reconciliation tasks include:

Input controls in an IT system that processed sales transactions would include all of the following EXCEPT:

The purposeful and organized changing of business processes to make the processes more efficient is known as:

A control that limits the risk of network break-ins is the coding of data that makes data unreadable to those without the appropriate key.This process does not stop the breaches, but will make the data useless.

In the cash receipts process, what must take place directly after preparing the cash receipts journal?

Which of the following would represent proper segregation of duties?

In following proper segregation of duties, those who handle cash should not be granted any of the following authorities EXCEPT: