Exam 12: Marketing, Sales, and Collection Processes

Julia's Cookies has identified the following B2B pricing control activity risk: "Collusion between an employee and a buyer may result in fraud activity and financial loss." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A(n) ________ is a source document that the bank sends of the daily listings of each check received from the customers.

Which of the following ERP modules is responsible for the marketing management function?

Julia's Cookies has identified the following B2B credit customer control activity risk: "Sales made to unreliable customers may result in unacceptable credit risks and excessive bad debts." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Julia's Cookies has identified the following B2B shipping control activity risk: "Lost or fraudulently diverted undelivered shipments may result in customer dissatisfaction, complaints, and financial losses." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Haley is the vice president of marketing and sales at Robert and Son's Sunglasses, Inc. Given the increased level of competition, she realizes that the company's continued success requires flexibility when it comes to marketing and sales. Robert and Son's Sunglasses' sales organization employs a team of full-time salespeople to sell directly to the independent retail outlets that sell their sunglasses. Required: Discuss some of the opportunities and challenges Robert and Son's Sunglasses faces by employing their own sales team versus using third-party sales representatives.

Julia's Cookies has identified the following recording cash receipts control activity risk: "Recording inflated receipts from customers may result in overstated revenues." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Inventory management is important because ________ and ________ determine inventory requirements, which in turn drives purchases of raw materials and supplies.

Julia's Cookies has identified the following B2C cash collections control activity risk: "Cash passing between customers and cashiers may result in cashiers pocketing cash." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

RAM Manufacturing, Inc. is planning to purchase a new ERP system. Jim, who works in revenue recognition, is creating an entity relationship diagram as part of this project. Jim has learned that all RAM Manufacturing sales order line items must contain one and only one inventory item. Some inventory items have not yet sold, and many inventory items will be sold on many sales order line items. Draw the entity relationship diagram between the sales order line item and inventory entities.

Julia's Cookies has identified the following B2B shipping control activity risk: "Shipments made to incorrect customers or locations may result in customer dissatisfaction, complaints, and financial losses." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A delivery receipt is a source document that is sent to the customer. What is some of the information that would be included on a delivery receipt?

Julia's Cookies has identified the following B2B pricing control activity risk: "Inappropriately given or unauthorized customer discounts may result in financial loss." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Julia's Cookies has identified the following B2B sales contracts control activity risk: "Verbal agreements may result in a legally binding agreement with unfavorable outcomes." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Julia's Cookies has identified the following B2B marketing control activity risk: "An unauthorized user may access the marketing database causing inappropriate access to sensitive data related to business customers and leads, resulting in legal and reputational damage." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Julia's Cookies has identified the following B2C marketing control activity risk: "An unauthorized user posting inappropriate content to the corporate social media accounts may result in legal or reputational damage." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Diagrammed below are the high-level Business-to-Consumer activities for Julia's Cookies. What is the activity labeled as B called?

Julia's Cookies has identified the following revenue recognition fraud control activity risk: "Sales invoices with incorrect quantities and/or prices may result in misstatement of sales revenue and accounts receivable." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

B2C payments can be made with cash, checks, mobile payment apps, or credit cards, but they are referred to as ________ because the accounting transactions are all recorded to the ________ account on the balance sheet.

Most of the sales of Robert and Son's Sunglasses, Inc. to independent retail outlets are on credit. If the independent retail outlet returns the sunglasses unopened, what accounts are debited and what accounts are credited?