Question 1

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 1 from the list below.

Accepted Answer

A)  Recognize revenue when (or as) the entity satisfies a performance obligation. 
B)  Determine the transaction price. 
C)  Identify the contract with a customer. 
D)  Allocate the transaction price to the performance obligations in the contract. 
E)  Identify the performance obligations in the contract. 
A)  Recognize revenue when (or as) the entity satisfies a performance obligation. 
B)  Determine the transaction price. 
C)  Identify the contract with a customer. 
D)  Allocate the transaction price to the performance obligations in the contract. 
E)  Identify the performance obligations in the contract.

Question 2

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 2 from the list below.

Accepted Answer

A)  Recognize revenue when (or as) the entity satisfies a performance obligation. 
B)  Determine the transaction price. 
C)  Identify the contract with a customer. 
D)  Allocate the transaction price to the performance obligations in the contract. 
E)  Identify the performance obligations in the contract. 
A)  Recognize revenue when (or as) the entity satisfies a performance obligation. 
B)  Determine the transaction price. 
C)  Identify the contract with a customer. 
D)  Allocate the transaction price to the performance obligations in the contract. 
E)  Identify the performance obligations in the contract.

Question 3

Julia's Cookies has identified the following cash receipt control activity risk: "Cash discounts taken by customers that are incorrect may result in loss of profit and future cash receipts." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Accepted Answer

A)  Automated calculation of discounts 
B)  Deposit checks received in the mail daily. 
C)  Regular independent bank reconciliations with management review 
D)  Perform independent check of remittance advices from customers against daily remittance list 
A)  Automated calculation of discounts 
B)  Deposit checks received in the mail daily. 
C)  Regular independent bank reconciliations with management review 
D)  Perform independent check of remittance advices from customers against daily remittance list

Question 4

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 4 from the list below.

Accepted Answer

A)  Recognize revenue when (or as) the entity satisfies a performance obligation. 
B)  Determine the transaction price. 
C)  Identify the contract with a customer. 
D)  Allocate the transaction price to the performance obligations in the contract. 
E)  Identify the performance obligations in the contract. 
A)  Recognize revenue when (or as) the entity satisfies a performance obligation. 
B)  Determine the transaction price. 
C)  Identify the contract with a customer. 
D)  Allocate the transaction price to the performance obligations in the contract. 
E)  Identify the performance obligations in the contract.

Question 5

As it does in other business processes like sales and revenue recognition, the system processes and stores the cash collection data. The processed data can appear in reports that can help a company improve processes and mitigate risks. Choose from the following list the best definition of an outstanding balances report.

Accepted Answer

A)  Summarized by customers over a period of time 
B)  Summarizes outstanding amounts due by customer 
C)  Summarizes the current balance in accounts payable for each customer at a specific point in time 
D)  Bank reconciliation between bank statements and the control account in the general ledger 
A)  Summarized by customers over a period of time 
B)  Summarizes outstanding amounts due by customer 
C)  Summarizes the current balance in accounts payable for each customer at a specific point in time 
D)  Bank reconciliation between bank statements and the control account in the general ledger

Question 6

Julia's Cookies has identified the following cash receipt control activity risk: "Checks received in the mail that do not agree with the daily remittance list may result in misstatement of financial statements and incorrect accounts receivable records." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Accepted Answer

A)  Automated calculation of discounts 
B)  Deposit checks received in the mail daily. 
C)  Regular independent bank reconciliations with management review 
D)  Perform independent check of remittance advices from customers against daily remittance list. 
A)  Automated calculation of discounts 
B)  Deposit checks received in the mail daily. 
C)  Regular independent bank reconciliations with management review 
D)  Perform independent check of remittance advices from customers against daily remittance list.

Question 7

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

Accepted Answer

A)  Marketing 
B)  Pricing and contracts 
C)  Sales 
D)  Shipping 
E)  Accounts Receivable 
A)  Marketing 
B)  Pricing and contracts 
C)  Sales 
D)  Shipping 
E)  Accounts Receivable

Question 8

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

Accepted Answer

A)  One-to-One 
B)  One-to-Many 
C)  Many-to-Many 
D)  Many-to-One 
A)  One-to-One 
B)  One-to-Many 
C)  Many-to-Many 
D)  Many-to-One

Question 9

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

Accepted Answer

A)  Marketing 
B)  Pricing and contracts 
C)  Sales 
D)  Shipping 
E)  Accounts Receivable 
A)  Marketing 
B)  Pricing and contracts 
C)  Sales 
D)  Shipping 
E)  Accounts Receivable

Question 10

________ are dependent on the customers' creditworthiness.

Accepted Answer

A)  Credit terms 
B)  Debit terms 
C)  Sales orders 
D)  Purchase orders 
A)  Credit terms 
B)  Debit terms 
C)  Sales orders 
D)  Purchase orders

Question 11

Julia's Cookies has identified the following cash receipt control activity risk: "Checks received in the mail that are lost or misappropriated after receipt may result in financials loss and customer dissatisfaction." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Accepted Answer

A)  Perform independent check of remittance advices from customers against daily remittance list. 
B)  Prepare a daily remittance list immediately upon opening mail and restrictively endorse checks. 
C)  Automated calculation of discounts 
D)  Regular independent bank reconciliations with management review 
A)  Perform independent check of remittance advices from customers against daily remittance list. 
B)  Prepare a daily remittance list immediately upon opening mail and restrictively endorse checks. 
C)  Automated calculation of discounts 
D)  Regular independent bank reconciliations with management review

Question 12

Reference the entity relationship diagram of the marketing, sales, and collection ERP modules below.
  What is the foreign key in the Sales_OrderLineItem entity that establishes the relationship with the Sales_Order entity?

Accepted Answer

A)  SalesLine_ID 
B)  SalesOrder_ID 
C)  Inventory_ID 
D)  Quantity 
E)  Price 
A)  SalesLine_ID 
B)  SalesOrder_ID 
C)  Inventory_ID 
D)  Quantity 
E)  Price

Question 13

Julia's Cookies has identified the following revenue recognition misstatement control activity risk: "Improper revenue recognition may result in incorrect recordings during a reporting period and misstatement of financial statements." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Accepted Answer

A)  Strict enforcement of the company's sales cutoff policy 
B)  Reconcile totals for invoices to gross sales in the general ledger to verify completeness and accuracy. 
C)  Segregate billing function from shipping and accounts receivable functions. 
D)  Review accounts receivable periodically including write-offs and aging. 
A)  Strict enforcement of the company's sales cutoff policy 
B)  Reconcile totals for invoices to gross sales in the general ledger to verify completeness and accuracy. 
C)  Segregate billing function from shipping and accounts receivable functions. 
D)  Review accounts receivable periodically including write-offs and aging.

Question 14

As it does in other business processes like sales and revenue recognition, the system processes and stores the cash collection data. The processed data can appear in reports that can help a company improve processes and mitigate risks. Choose from the following list the best definition of a sales amounts report.

Accepted Answer

A)  Summarized by customers over a period of time 
B)  Summarizes outstanding amounts due by customer 
C)  Summarizes the current balance in accounts receivable for each customer at a specific point in time 
D)  Bank reconciliation between bank statements and the control account in the general ledger 
A)  Summarized by customers over a period of time 
B)  Summarizes outstanding amounts due by customer 
C)  Summarizes the current balance in accounts receivable for each customer at a specific point in time 
D)  Bank reconciliation between bank statements and the control account in the general ledger

Question 15

Julia's Cookies has identified the following cash receipt control activity risk: "Checks received in the mail that are lost or misappropriated after receipt may result in financials loss and customer dissatisfaction." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Accepted Answer

A)  Implement electronic funds transfer directly to the company's bank account or a lockbox system. 
B)  Perform independent check of remittance advices from customers against daily remittance list. 
C)  Automated calculation of discounts 
D)  Regular independent bank reconciliations with management review 
A)  Implement electronic funds transfer directly to the company's bank account or a lockbox system. 
B)  Perform independent check of remittance advices from customers against daily remittance list. 
C)  Automated calculation of discounts 
D)  Regular independent bank reconciliations with management review

Question 16

Julia's Cookies has identified the following B2C delivery control activity risk: "Unprotected food during delivery may result in delivering a subpar product to customers, food contamination, or theft of product." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Accepted Answer

A)  Password logs only available to authorized users 
B)  Social media posts subject to review and approval before posting 
C)  Only cashless payments accepted in stores 
D)  Food tampering stickers or seals on delivery containers 
A)  Password logs only available to authorized users 
B)  Social media posts subject to review and approval before posting 
C)  Only cashless payments accepted in stores 
D)  Food tampering stickers or seals on delivery containers

Question 17

Cash collections for B2C customers usually occurs

Accepted Answer

A)  at the time the sale is made. 
B)  on credit. 
C)  one week later. 
D)  one month later. 
A)  at the time the sale is made. 
B)  on credit. 
C)  one week later. 
D)  one month later.

Question 18

Julia's Cookies has identified the following revenue recognition misstatement control activity risk: "Sales billed to customers that are not recorded as revenue in the general ledger may result in misstatement of financial statements." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Accepted Answer

A)  Strict enforcement of the company's sales cutoff policy 
B)  Reconcile totals for invoices to gross sales in the general ledger to verify completeness and accuracy. 
C)  Segregate billing function from shipping and accounts receivable functions. 
D)  Review accounts receivable periodically including write-offs and aging. 
A)  Strict enforcement of the company's sales cutoff policy 
B)  Reconcile totals for invoices to gross sales in the general ledger to verify completeness and accuracy. 
C)  Segregate billing function from shipping and accounts receivable functions. 
D)  Review accounts receivable periodically including write-offs and aging.

Question 19

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

Accepted Answer

A)  Marketing 
B)  Pricing and contracts 
C)  Sales 
D)  Shipping 
E)  Accounts Receivable 
A)  Marketing 
B)  Pricing and contracts 
C)  Sales 
D)  Shipping 
E)  Accounts Receivable

Question 20

Julia's Cookies has identified the following B2B credit customer control activity risk: "Inadequate or inconsistently applied creditworthiness checking may result in excessive bad debts and a wide variety of credit terms." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Accepted Answer

A)  Follow documented and authorized credit policies and procedures for all customers. 
B)  Review credit limits periodically and adjust if required. 
C)  Use standardized, authorized sales contracts that are legally enforceable. 
D)  Employee training covering appropriate and inappropriate wording when speaking with customers 
A)  Follow documented and authorized credit policies and procedures for all customers. 
B)  Review credit limits periodically and adjust if required. 
C)  Use standardized, authorized sales contracts that are legally enforceable. 
D)  Employee training covering appropriate and inappropriate wording when speaking with customers

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 1 from the list below.

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 2 from the list below.

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 4 from the list below.

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

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

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

________ are dependent on the customers' creditworthiness.

Reference the entity relationship diagram of the marketing, sales, and collection ERP modules below. What is the foreign key in the Sales_OrderLineItem entity that establishes the relationship with the Sales_Order entity?

Cash collections for B2C customers usually occurs

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

Accounting As Information

Risks and Risk Assessments

Risk Management and Internal Controls

Software and Systems

Data Storage and Analysis

Systems and Database Design

Emerging and Disruptive Technologies

Documenting Systems and Processes

Human Resources and Payroll Processes

Purchasing and Payments Process

Conversion Processes

Financial Reporting Processes

Information Systems and Controls

Fraud

Cybersecurity

Data Analytics

Data Visualization

Audit Assurance

Filters

Exam 12: Marketing, Sales, and Collection Processes

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 1 from the list below.

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 2 from the list below.

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 4 from the list below.

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

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

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

________ are dependent on the customers' creditworthiness.

Reference the entity relationship diagram of the marketing, sales, and collection ERP modules below. What is the foreign key in the Sales_OrderLineItem entity that establishes the relationship with the Sales_Order entity?

Cash collections for B2C customers usually occurs

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

Accounting As Information

Risks and Risk Assessments

Risk Management and Internal Controls

Software and Systems

Data Storage and Analysis

Systems and Database Design

Emerging and Disruptive Technologies

Documenting Systems and Processes

Human Resources and Payroll Processes

Purchasing and Payments Process

Conversion Processes

Financial Reporting Processes

Information Systems and Controls

Fraud

Cybersecurity

Data Analytics

Data Visualization

Audit Assurance

Filters