Exam 11: The Billingaccounts Receivablecash Receipts Barcr Process

In an organization in which the OE/S and B/AR/CR processes are separate processes, the B/AR/CR process usually accomplishes all of the following activities except:

The ACH network electronically transfers funds by crediting the collector's bank account and debiting the payer's bank account for the amount of a payment.

Forced vacations is the only control procedure that can be used to help prevent or detect lapping.

Which of the following is most commonly associated with the treasury function?

The ______________________________ network is one of the earliest and most prominent methods for EFT in which the collector's bank account is credited and the payer's bank account is debited for the amount of a payment.

A(n) ______________________________ is a form of payment authorizing the collector to transfer funds electronically from the payer's bank account to the collector's bank account.

The credit department uses accounts receivable master data to complete several of their activities.

Recording B/AR/CR event data is generally the responsibility of the treasury department, which typically reports to the controller function.

Electronic bill presentment and payment (EBPP) systems are B2B systems that use a Web site to post customers' bills and to receive their electronic payments.

The three types of accounts receivable systems discussed in the text are the lockbox, balance-forward, and open-item systems.

The payment event data contains the details of each payment received.

EFT includes wire transfers, credit and debit card processing, as well as payments made via the ACH Network.

The goal for treasurers, who are responsible for managing an organization's cash resources, is to make funds available so that they can be used to acquire revenue-generating assets, be invested to earn interest, or be used to reduce debt, thus saving interest charges.

One type of accounts receivable system is balance-forward, the other is:

In a(n) ______________________________ billing system, invoices are prepared upon acceptance of the customer order.

A credit card is a form of payment authorizing the collector to transfer funds electronically from the payer's bank account to the collector's bank account.

A billing system that can be used when there is little or no delay between the receipt of the customer order and the shipment of the goods is a:

Which of the following statements is false?

Typically, the operations process goals of the B/AR/CR:

The ______________________________ type of accounts receivable systems is appropriate in situations where invoices are prepared and sent for each sale (i.e., each shipment), and the customer typically makes payments for specific invoices when those invoices are due.