Exam 12: Marketing, Sales, and Collection Processes

Jim walks into Starbucks, places an order at the counter, pays at the cash register and receives his cup of coffee. Choose from the list below the appropriate type of payment method that Jim has partaken in?

Julia's Cookies has identified the following revenue recognition fraud control activity risk: "Fictitious sales may result in overstatement of revenues (a credit) and receivables (a debit) or understatement of expenses (a debit)." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A new RAM Manufacturing customer, Tri-Auto Repair, orders parts on August 1, 20XX for delivery the following week and pays cash in advance for the order. The selling price of the parts is $10,000 and the cost of goods sold is $6,500. The parts are delivered on August 10, 20XX. Record the three accounting transactions.

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

Robert & Son's Sunglasses, Inc. has been designing and manufactures sunglasses for sale through numerous independent retail outlets and also on their website: www.robertandsonsglasses.com. The sale of sunglasses to the independent retail outlets is an example of: I. Business-to-consumer II. Business-to-business

Julia's Cookies has identified the following revenue recognition fraud control activity risk: "Sales returns and credits and adjustments made for returns not properly recorded may result in misstatements in accounting records." 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 order control activity risk: "A sales order without credit approval or above the credit limit may result in uncollectible accounts." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

Robert & Son's Sunglasses, Inc. has been designing and manufactures sunglasses for sale through numerous independent retail outlets and also on their website: www.robertandsonsglasses.com. The sale of sunglasses through Robert and Son's website is an example of: I. Business-to-consumer II. Business-to-business

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.

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 invoices are related to one and only one sales order. However, a sales order may have no invoices or many invoices. Draw the entity relationship diagram between the sales order and invoices entities.

Julia's Cookies has identified the following B2C delivery control activity risk: "Customers filing fictitious claims that products were damaged upon receipt may result in fraudulent refunds to customers." 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 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.

Like sales data, data from revenue recognition is processed by the system. 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 customer revenue report.

Electronic payment data is transmitted through the ________, which is an electronic system serving financial institutions. It facilitates financial transactions in the U.S.

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 3 from the list below.

Julia's Cookies has identified the following revenue recognition misstatement control activity risk: "Sales to customers not resulting in billing or recognizing the revenue may result in loss of cash because customers may never pay, leading to misstatement of financial statements." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A(n) ________ is a P.O. box that can only be accessed by the company's bank. The bank collects the checks daily, deposits them into the company bank account, and sends source documents to the company.

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.

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

The sales process generates a lot of 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 non-invoiced shipments report.