Exam 11: The Billingaccounts Receivablecash Receipts Barcr Process

The ______________________________ data is a repository of all unpaid invoices issued by an organization and awaiting final disposition.

Below is the narrative of the "Manage customer accounts" portion (i.e., bubble 2.0) of the B/AR/CR process. Narrative Description Processes 2.1 through 2.3 relate to sales returns adjustments. This process begins when there is notification from the receiving department that goods have been returned by a customer. Subprocess 2.1 obtains data from the accounts receivable master data to validate the return. If the sales return is not valid, it will be rejected (see Reject stub) and processed through a separate exception routine. If the sales return is valid, it is sent to subprocess 2.2 where a credit memo is prepared and sent to the customer, and the accounts receivable master data is updated to reflect the credit. At the same time, the validated sales return is sent to subprocess 2.3 where a journal voucher is prepared, which is used to create a record in the AR adjustments event data store (i.e., the journal), and the general ledger is notified that a credit memo has been issued. This results in updates to sales returns and allowances and to AR. Process 2.4 is triggered by a periodic review of aging details obtained from the accounts receivable master data. The aging details would be used to identify and follow up on late-paying customer accounts. One of two types of adjustments might result from this review: The recuring adgusting entry for estimated bad debts. The periodic wite-off of "definitely warthess" customer accounts Like process 2.4, bubble 2.5, "Prepare customer statements," also is triggered by a periodic event that recurs at specified intervals, often on a monthly basis in practice. Details of unpaid invoices are extracted from the accounts receivable master data and are summarized in a statement of account that is mailed (or sent electronically) to customers. Required: From the DFD in TB Figure 11.3 and the narrative description above, explode bubble 2.0 into a lower-level diagram showing the details of that process.

The control plan ______________________________ ensures that invoices, accounts receivable, and revenue reflect prices, terms, freight, and discounts authorized by management.

To reduce the cost of collecting its accounts receivable, a company sells its accounts receivable to a financial organization. The service is called:

Deposit slips are usually generated by the B/AR/CR process:

The stub attached to the customer statement is also known as a turnaround document.

In a pre-billing system, invoices are prepared:

Placing a customer's bills on a company's own Web site and sending an e-mail telling the customer that his or her bill is there is called:

In the billing function described in the text, the control plan that contributes to effective operations is:

In an open-item system, accounts receivable records consist of a customer's current balance due, past-due balance, and the finance charges and payments related to the account.

In a logical DFD for a B/AR/CR process, which of the following data stores would you expect to interact with a process called "manage customer accounts"?

A(n) ______________________________ is a business document used by the payer to notify the payee of the items being paid.

The control plan ______________________________ controls the billing and cash receipts functions by asking the customer to review open invoices to determine that they are valid and accurate.

Funds on deposit and available for use are known as ______________________________ funds.

The accounts receivable master data is created as sales returns, bad debt write-offs, estimated doubtful accounts, or similar adjustments are processed.

The Check Clearing for the 21st Century Act called ______________________________ allows banks to exchange check images electronically.

The acronym ACH stands for automated clearing house.

As discussed in the text, the functions of the B/AR/CR process:

According to the concept of segregation of duties, which of the following managers should report to the controller rather than to the treasurer?

______________________________, when applied to cash receipts, is the time between the payment by a customer and the availability of funds on deposit and available for use.