Exam 12: Marketing, Sales, and Collection Processes

Select the best definition of revenue recognition from the list below.

________ oversees the lifecycle of a product from procuring raw materials through customer sales.

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 orders must have at least one sales order line item and can have many sales order line items. Each sales order line item is related to one and only one sales order. Draw the entity relationship diagram between the sales order and sales order line item entities.

The determination and recording of ________, based on credit checks and payment history, must be checked before accepting an order from a customer.

Reference the entity relationship diagram of the marketing, sales, and collection ERP modules below. What is the primary key of the Sales_Order entity?

Which of the following ERP modules is responsible for the accounts receivable function?

A sales order is a source document that is sent to the customer. What are some of the order details that would be included on a sales order?

Julia's Cookies has identified the following recording cash receipts control activity risk: "Receipts posted to the incorrect customer account may result in customer dissatisfaction." 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-Business activities for Julia's Cookies. What is the activity labeled as E called?

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

Julia's Cookies has identified the following cash deposit control activity risk: "Checks received in the mail that are not deposited intact may result in missing cash." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Reference the entity relationship diagram of the marketing, sales, and collection ERP modules below. A sales order may be referenced in ________ or ________ AR invoice.

Channel stuffing occurs when revenue and profits are intentionally inflated by recognizing revenue from unnecessary sales in the current quarter or year. Discuss what impact (beneficial or detrimental) channel stuffing may have in the company's following period and why.

Most of the sales of Robert and Son's Sunglasses, Inc. to independent retail outlets are on credit. When the independent retail outlet submits payment, what account is debited and what account is credited?

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

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

RAM Manufacturing, Inc. pays for purchases at the time of order, even though items sold by the supplier have not yet been packaged or shipped. Choose from the list below the appropriate type of payment method that RAM Manufacturing has partaken in?

Julia's Cookies has identified the following B2B shipping control activity risk: "Lack of shipping documentation may result in inaccurate shipments, fraudulent shipments, or missed shipments." 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: "Shipping incorrect products or quantities may result in customer dissatisfaction, complaints, sales returns, and financial losses." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

________ is the oversight of the inventory lifecycle from purchase to sales.