Exam 8: Revenue and Cash Collection Processes and Controls

This type of highly integrated IT system, inter-company, computer-to-computer, communicates sales documents electronically with a standard business format.

An example of an independent verification in the sale process is:

A special journal used to record all cash collections is called a(n):

A chronological listing of shipments that allows management to track the status of sales and to answer customer inquiries regarding order status is called a(n):

The process of user identification to ensure that only authorized users are accessing the IT system, which occurs through the use of user ID, password, and other unique identifiers, is called:

Circumstances within a company, related to sales returns, that indicate a high level of risk include all of the following, except:

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

The preparation of packing lists and shipping records on prenumbered forms will help to minimize the related risk of:

Under a system of sound internal controls, if a company sold defective goods, the return of those goods from the customer should be accepted by the:

Which of the following is NOT an example of a programmed input validation check that would help to detect and prevent keying errors?

This item documents the quantities and descriptions of items ordered.Items from this document should be pulled from the warehouse shelves and packaged for the customer.

This document is prepared and sent to the customer once the shipment has occurred.The document provides the details of the sale and requests payment.

The sales and cash collections process begins when:

This term refers to moving the current accounting period's cut-off date forward to include sales that correctly occur in a future period.This activity occurs so that the selling company can inflate their sales in the current period.

Important characteristics of electronic data interchange (EDI) include all of the following, except:

The security of having cash receipts deposited in the bank on a daily basis will help to minimize the related risk of:

A _______ is a credit to the customer account made to compensate the customer for a defective product or a late shipment.

The terms of agreement between the company and the common carrier are documented in a(n):

Common types of independent checks within the revenue process include all of the following, except:

Common means of presenting the revenue and cash collections processes pictorially include: