Exam 8: Revenue and Cash Collection Processes and Controls

In order to ensure that all records are updated only for authorized transactions, appropriate individuals should be assigned all of the following duties, except:

A source document prepared by the personnel in the receiving dock that documents the quantity and condition of the items received is called a(n):

This section of the common forms used as the standard format in EDI data transmission contains data about the file or transmission and identify the end of a particular transaction.

The form, or source document, that conveys the details about a customer's order, prepared by the customer, is referred to as:

This type of highly integrated IT system incorporates electronic processing of sales-related activities and, generally, the sales processes are transacted over the internet.

EDI systems have many advantages within the revenue and cash collection processes.Which of the following is not one of those benefits?

For each transaction cycle and each type of transaction, there are internal controls that help to minimize certain risk to the company.Using the terminology and framework developed in the text, describe the following for the sales cycle.

Which of the following relationships does not violate the rules of segregation of duties?

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

A special journal that is used to record sales transactions and is periodically posted to the general ledger.

All of the following documents are necessary in the cash receipts process except:

This occurs when the IT system automatically makes a list of users and the actions they take within the IT system.

A document prepared that lists the chronological sequence of all returned items is referred to as a(n):

The standard format used with electronic data interchange (EDI) allows all vendors and buyers to speak the same language.This group has developed the standard format for the common documents used in the sales process:

In order to properly monitor customer payments and determine the amount of an allowance for uncollectible accounts, a(n) _________ should be generated to analyze all customer balances and the respective lengths of time that have elapsed since payments were due.

The internal control activity related to the adequate records and documents, related to sales, includes which of the following?

The standard format for common forms used in the United States for electronic data interchange (EDI) data transmission is divided into three parts.Which of the following is one of those "parts"?

General controls in an IT system that processed sales transactions would include all of the following, except:

The segregation of duties related to sales returns would ideally separate the function of performing the credit memo activity and all of the following, except:

Within the revenue processes, a signed approval of a sales order indicates all of the following except: