Question 1

In a post-billing system, invoices are prepared upon acceptance of the customer order.

Accepted Answer

A) True 
 B)False

Question 2

A debit card is a method of payment whereby a third party, for a fee, removes from the collector the risk of non-collection of the account receivable.

Accepted Answer

A) True 
 B)False

Question 3

In a(n) ______________________________ billing system, invoices are prepared after the goods have been shipped and the sales order notification has been matched to the shipping's billing notification.

Accepted Answer

The answer of In a(n) ______________________________ billing system, invoices are...

Question 4

The control plan ______________________________ assumes that there is a segregation of duties between those who approve prices and those involved in the selling function.

Accepted Answer

independen

Question 5

The ______________________________ process supports the repetitive work routines of the credit department, the cashier, and the accounts receivable department.

Accepted Answer

B/AR/CR
billing/accounts recei

Question 6

Which of the following control plans is most likely to appear in the input validity and input accuracy columns, but not in the input completeness column of a control matrix for the billing process?

Accepted Answer

A)  independent billing authorization 
B)  reconcile input and output batch totals 
C)  check for authorized prices, term, freight, and discounts 
D)  procedures for rejected inputs 
A)  independent billing authorization 
B)  reconcile input and output batch totals 
C)  check for authorized prices, term, freight, and discounts 
D)  procedures for rejected inputs

Question 7

A form of fraud in which the payments made by one customer are systematically applied to the account of another is called:

Accepted Answer

A)  lapping 
B)  malfeasance 
C)  pre-posting 
D)  knitting 
A)  lapping 
B)  malfeasance 
C)  pre-posting 
D)  knitting

Question 8

Which of the following is not part of the horizontal information flows of the B/AR/CR process?

Accepted Answer

A)  accounts receivable aging report 
B)  customer payment 
C)  bank deposit 
D)  customer invoice 
A)  accounts receivable aging report 
B)  customer payment 
C)  bank deposit 
D)  customer invoice

Question 9

When customers pay with a(n) ______________________________ card, float is eliminated.

Accepted Answer

The answer of When customers pay with a(n) ______________________________ card,...

Question 10

Recording B/AR/CR event data is generally the responsibility of the accounts receivable department, which for good internal control typically reports to the ______________________________ function.

Accepted Answer

The answer of Recording B/AR/CR event data is generally the...

Question 11

The E-R diagram below represents a B/AR/CR process but with the names of certain entities, and relationship cardinalities removed from the diagram. In alphabetic order, the names omitted are:
 BANKS
CAEH_RECEIPTS
CUSTOMERS
DEPOSITE
INVENTORY
SALES_INVOICES
SALES_ORDERS
SHIPMENTS Required:
Complete The E-R Diagram (TB Figure 11.12) by:
a. Inserting the names from the above lists into the boxes where they belong.
b. Inserting a 1 or an M or an N where necessary to indicate whether the cardinality of the relationship is: one-to-one (1:1), one-to-many (1:M), or many-to-many (M:N).

Accepted Answer

The answer of The E-R diagram below represents a B/AR/CR...

Question 12

In the organization structure shown in the text, although both report to the VP of Finance, the ______________________________ and ______________________________ functions should be segregated.

Accepted Answer

treasurer,

Question 13

______________________________ is a fraud resulting from the improper segregation of duties between the functions of handling cash and recording cash receipt events.

Accepted Answer

The answer of ______________________________ is a fraud resulting from the...

Question 14

Database systems are Internet based systems for sending bills/invoices to customers and receiving the customer payment electronically.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following segregation of duties is not required for the B/AR/CR business process controls to be effective?

Accepted Answer

A)  price authorization and billing 
B)  treasury and controllership 
C)  bank reconciliation and cash receipts 
D)  all of these are required for effective control 
A)  price authorization and billing 
B)  treasury and controllership 
C)  bank reconciliation and cash receipts 
D)  all of these are required for effective control

Question 16

Which of the following statements is false?

Accepted Answer

A)  The typical B/AR/CR system assists in preparing internal and external reports. 
B)  Cash receipts can be accelerated by using some form of EFT. 
C)  The two types of adjustments that commonly result from a periodic review of the aging details of customer account balances are a recurring entry for estimated bad debts and a bad debt write-off. 
D)  Cash receipts events data are comprised of one or more invoice records. 
A)  The typical B/AR/CR system assists in preparing internal and external reports. 
B)  Cash receipts can be accelerated by using some form of EFT. 
C)  The two types of adjustments that commonly result from a periodic review of the aging details of customer account balances are a recurring entry for estimated bad debts and a bad debt write-off. 
D)  Cash receipts events data are comprised of one or more invoice records.

Question 17

An electronic bill presentment and payment (EBPP) system is a B2C system that uses a Web site to post customer bills and to receive electronic payments.

Accepted Answer

A) True 
 B)False

Question 18

Organizations should monitor ______________________________ to ensure that cash is received in a timely manner.

Accepted Answer

open accounts receiv

Question 19

The billing system in which the invoice is prepared after goods have been shipped and the sales order notification has been matched to shipping's billing notification is called a(n):

Accepted Answer

A)  post-billing system 
B)  open-item system 
C)  pre-billing system 
D)  balance-forward system 
A)  post-billing system 
B)  open-item system 
C)  pre-billing system 
D)  balance-forward system

Question 20

A customer is instructed to send his remittance advice and check to a bank's postal address. This method for collecting customer cash receipts is called:

Accepted Answer

A)  electronic funds transfer 
B)  automated clearing house 
C)  Check 21 
D)  Lockbox 
A)  electronic funds transfer 
B)  automated clearing house 
C)  Check 21 
D)  Lockbox

In a post-billing system, invoices are prepared upon acceptance of the customer order.

A debit card is a method of payment whereby a third party, for a fee, removes from the collector the risk of non-collection of the account receivable.

In a(n) ______________________________ billing system, invoices are prepared after the goods have been shipped and the sales order notification has been matched to the shipping's billing notification.

The control plan ______________________________ assumes that there is a segregation of duties between those who approve prices and those involved in the selling function.

The ______________________________ process supports the repetitive work routines of the credit department, the cashier, and the accounts receivable department.

Which of the following control plans is most likely to appear in the input validity and input accuracy columns, but not in the input completeness column of a control matrix for the billing process?

A form of fraud in which the payments made by one customer are systematically applied to the account of another is called:

Which of the following is not part of the horizontal information flows of the B/AR/CR process?

When customers pay with a(n) ______________________________ card, float is eliminated.

Recording B/AR/CR event data is generally the responsibility of the accounts receivable department, which for good internal control typically reports to the ______________________________ function.

In the organization structure shown in the text, although both report to the VP of Finance, the and functions should be segregated.

______________________________ is a fraud resulting from the improper segregation of duties between the functions of handling cash and recording cash receipt events.

Database systems are Internet based systems for sending bills/invoices to customers and receiving the customer payment electronically.

Which of the following segregation of duties is not required for the B/AR/CR business process controls to be effective?

Which of the following statements is false?

An electronic bill presentment and payment (EBPP) system is a B2C system that uses a Web site to post customer bills and to receive electronic payments.

Organizations should monitor ______________________________ to ensure that cash is received in a timely manner.

The billing system in which the invoice is prepared after goods have been shipped and the sales order notification has been matched to shipping's billing notification is called a(n):

A customer is instructed to send his remittance advice and check to a bank's postal address. This method for collecting customer cash receipts is called:

Introduction to Accounting Information Systems

Enterprise Systems

Electronic Business E-Business Systems

Documenting Information Systems

Database Management Systems

Relational Databases and SQL

Controlling Information Systems: Introduction to Enterprise Risk Management and Internal Control

Controlling Information Systems: Introduction to Pervasive Controls

Controlling Information Systems: Business Process and Application Controls

The Order Entrysales Oes Process

The Purchasing Process

The Accounts Payablecash Disbursements Apcd Process

The Human Resources Process HR Management and Payroll Processes

Integrated Production Processes IPP

The General Ledger and Business Reporting GLBR Process

Acquiring and Implementing Accounting Information Systems

Filters

Exam 11: The Billingaccounts Receivablecash Receipts Barcr Process

In a post-billing system, invoices are prepared upon acceptance of the customer order.

A debit card is a method of payment whereby a third party, for a fee, removes from the collector the risk of non-collection of the account receivable.

In a(n) ______________________________ billing system, invoices are prepared after the goods have been shipped and the sales order notification has been matched to the shipping's billing notification.

The control plan ______________________________ assumes that there is a segregation of duties between those who approve prices and those involved in the selling function.

The ______________________________ process supports the repetitive work routines of the credit department, the cashier, and the accounts receivable department.

Which of the following control plans is most likely to appear in the input validity and input accuracy columns, but not in the input completeness column of a control matrix for the billing process?

A form of fraud in which the payments made by one customer are systematically applied to the account of another is called:

Which of the following is not part of the horizontal information flows of the B/AR/CR process?

When customers pay with a(n) ______________________________ card, float is eliminated.

Recording B/AR/CR event data is generally the responsibility of the accounts receivable department, which for good internal control typically reports to the ______________________________ function.

In the organization structure shown in the text, although both report to the VP of Finance, the ______________________________ and ______________________________ functions should be segregated.

______________________________ is a fraud resulting from the improper segregation of duties between the functions of handling cash and recording cash receipt events.

Database systems are Internet based systems for sending bills/invoices to customers and receiving the customer payment electronically.

Which of the following segregation of duties is not required for the B/AR/CR business process controls to be effective?

Which of the following statements is false?

An electronic bill presentment and payment (EBPP) system is a B2C system that uses a Web site to post customer bills and to receive electronic payments.

Organizations should monitor ______________________________ to ensure that cash is received in a timely manner.

The billing system in which the invoice is prepared after goods have been shipped and the sales order notification has been matched to shipping's billing notification is called a(n):

A customer is instructed to send his remittance advice and check to a bank's postal address. This method for collecting customer cash receipts is called:

Introduction to Accounting Information Systems

Enterprise Systems

Electronic Business E-Business Systems

Documenting Information Systems

Database Management Systems

Relational Databases and SQL

Controlling Information Systems: Introduction to Enterprise Risk Management and Internal Control

Controlling Information Systems: Introduction to Pervasive Controls

Controlling Information Systems: Business Process and Application Controls

The Order Entrysales Oes Process

The Purchasing Process

The Accounts Payablecash Disbursements Apcd Process

The Human Resources Process HR Management and Payroll Processes

Integrated Production Processes IPP

The General Ledger and Business Reporting GLBR Process

Acquiring and Implementing Accounting Information Systems

Filters

In the organization structure shown in the text, although both report to the VP of Finance, the and functions should be segregated.