Question 1

To bill a customer,the billing department must:

Accepted Answer

A) Check inventory levels 
B) Perform a credit check 
C) Check that the sale has been completed 
D) Check that the customer has received the goods. 
A) Check inventory levels 
B) Perform a credit check 
C) Check that the sale has been completed 
D) Check that the customer has received the goods.

Question 2

Which of the following statements relating to the creation of an invoice is correct?

Accepted Answer

A) If invoices are not posted regularly,the amounts shown as owing in accounts receivable will be understated. 
B) If invoices are not posted regularly,the amounts shown as owing in accounts receivable will be overstated. 
C) Updating accounts receivable must happen in real-time;otherwise the accounts receivable accounts will be understated. 
D) Invoices must be dispatched with the goods to ensure timely payment. 
A) If invoices are not posted regularly,the amounts shown as owing in accounts receivable will be understated. 
B) If invoices are not posted regularly,the amounts shown as owing in accounts receivable will be overstated. 
C) Updating accounts receivable must happen in real-time;otherwise the accounts receivable accounts will be understated. 
D) Invoices must be dispatched with the goods to ensure timely payment.

Question 3

A credit check requires the information of :

Accepted Answer

A) Whether a credit limit has been established for the customer. 
B) Whether there is sufficient credit available. 
C) The detail of any recent sales that may not yet have been updated into the customer's accounts receivable account 
D) All of the options are correct. 
A) Whether a credit limit has been established for the customer. 
B) Whether there is sufficient credit available. 
C) The detail of any recent sales that may not yet have been updated into the customer's accounts receivable account 
D) All of the options are correct.

Question 4

Which of the following technologies is not directly relevant to the revenue cycle?

Accepted Answer

A) CRM 
B) ERP 
C) SCM 
D) EDI 
A) CRM 
B) ERP 
C) SCM 
D) EDI

Question 5

EDI is mainly used to:

Accepted Answer

A) produce versatile and adaptive systems for large repeat customers 
B) produce versatile and adaptive systems for customers of all sizes 
C) produce specifically tailored systems for large repeat customers 
D) produce specifically tailored systems for customers of all sizes 
A) produce versatile and adaptive systems for large repeat customers 
B) produce versatile and adaptive systems for customers of all sizes 
C) produce specifically tailored systems for large repeat customers 
D) produce specifically tailored systems for customers of all sizes

Question 6

Which of the following documents is/are given to customers? (i)shipping notice (ii)sales invoice (iii)remittance advice (iv)goods packing slip.

Accepted Answer

A) (i)(ii)(iii)only 
B) (ii)(iii)(iv)only 
C) (ii)(iii)only 
D) (i)(ii)(iii)(iv) 
A) (i)(ii)(iii)only 
B) (ii)(iii)(iv)only 
C) (ii)(iii)only 
D) (i)(ii)(iii)(iv)

Question 7

A document that is prepared by the shipping officer in the logistics unit for the common carriers that transport the goods to the customer is:

Accepted Answer

A) Bill of lading 
B) Shipping notice 
C) Goods packing slip 
D) Sales invoice 
A) Bill of lading 
B) Shipping notice 
C) Goods packing slip 
D) Sales invoice

Question 8

Describe how the revenue cycle can benefit from technologies such as ERP,EDI and XML.

Accepted Answer

The revenue cycle can benefit greatly fr

Question 9

KW Ltd separates the billing and shipping functions and imposes independent checks to ensure that goods have been shipped prior to billing the customer.This is an example of:

Accepted Answer

A) Reducing the risk of over-billing 
B) Reducing the risk of under-billing 
C) Reducing the risk of failing to bill a customer for a valid sale 
D) Eliminating the risk of failing to ship goods that have been invoiced. 
A) Reducing the risk of over-billing 
B) Reducing the risk of under-billing 
C) Reducing the risk of failing to bill a customer for a valid sale 
D) Eliminating the risk of failing to ship goods that have been invoiced.

Question 10

Cycle performance should be measured,primarily,relative to:

Accepted Answer

A) industry-average cycle time 
B) whether the process is efficiently carried out 
C) how cost-effective the process is 
D) how well the process outcomes achieve the overall objectives of that cycle 
A) industry-average cycle time 
B) whether the process is efficiently carried out 
C) how cost-effective the process is 
D) how well the process outcomes achieve the overall objectives of that cycle

Question 11

EDI stands for:

Accepted Answer

A) Electronic data interchange 
B) Electronic departmental integration 
C) Extensible digital information 
D) Ecommerce data interchange 
A) Electronic data interchange 
B) Electronic departmental integration 
C) Extensible digital information 
D) Ecommerce data interchange

Question 12

A sales order is created by using ________ as the main source of information.

Accepted Answer

A) Inventory level 
B) Credit information 
C) Sales request 
D) Forecasted sales. 
A) Inventory level 
B) Credit information 
C) Sales request 
D) Forecasted sales.

Question 13

A status code is:

Accepted Answer

A) A code used to show the credit level of a customer. 
B) A code on transactions that are moving through an iteration of a process indicating which stage of the process the transaction is at. 
C) A code used to flag whether the goods are shipped. 
D) Not accessible by the customer. 
A) A code used to show the credit level of a customer. 
B) A code on transactions that are moving through an iteration of a process indicating which stage of the process the transaction is at. 
C) A code used to flag whether the goods are shipped. 
D) Not accessible by the customer.

Question 14

The objective of the accounts receivable phase in the revenue cycle is to:

Accepted Answer

A) Ensure payments for goods and services are received on time and in correct amount. 
B) Ensure payments for goods and services are correctly received,recorded and banked. 
C) Ensure the accounts payable record is updated accordingly when payments for goods and services are received. 
D) Ensure that payments for goods and services are made to the correct suppliers. 
A) Ensure payments for goods and services are received on time and in correct amount. 
B) Ensure payments for goods and services are correctly received,recorded and banked. 
C) Ensure the accounts payable record is updated accordingly when payments for goods and services are received. 
D) Ensure that payments for goods and services are made to the correct suppliers.

Question 15

In terms of ensuring payments for goods and services are correctly received,recorded and banked,which of the following is unlikely to be a KPI?

Accepted Answer

A) Credit requests 
B) Aged accounts receivable reporting 
C) Number of bad debts written off 
D) Average payment times 
A) Credit requests 
B) Aged accounts receivable reporting 
C) Number of bad debts written off 
D) Average payment times

Question 16

The calculation of inventory availability requires knowledge of: (i)current levels of stock on hand (ii)stock on order (iii)stock promised to customers (iv)supplier lead time.

Accepted Answer

A) (i)(ii)only 
B) (i)(ii)(iv)only 
C) (i)(ii)(iii)only 
D) (i)(ii)(iii)(iv) 
A) (i)(ii)only 
B) (i)(ii)(iv)only 
C) (i)(ii)(iii)only 
D) (i)(ii)(iii)(iv)

Question 17

The sales order is a formal document that is prepared mainly using:

Accepted Answer

A) sales invoice 
B) customer order 
C) customer credit application 
D) customer service log 
A) sales invoice 
B) customer order 
C) customer credit application 
D) customer service log

Question 18

Which of the following departments is not part of the revenue cycle?

Accepted Answer

A) Billing department 
B) Sales department 
C) Shipping department 
D) Accounts payable department 
A) Billing department 
B) Sales department 
C) Shipping department 
D) Accounts payable department

Question 19

CRM stands for:

Accepted Answer

A) Computerised resource management 
B) Customer relationship management 
C) Corporate resource management 
D) Continuous reduction method. 
A) Computerised resource management 
B) Customer relationship management 
C) Corporate resource management 
D) Continuous reduction method.

Question 20

Which of the following is true with regards to establishing credit limits for customers?

Accepted Answer

A) The ability to add a new customer and change or assign a credit limit should be devolved to staff in the sales area 
B) To reduce the risk of accepting an uncreditworthy customer or incorrectly rejecting a creditworthy customer,it is important to independently maintain customer accounts and credit limits. 
C) Credit limits should be established based on desired sales targets. 
D) The Chief Financial Officer should overview all customer credit limits. 
A) The ability to add a new customer and change or assign a credit limit should be devolved to staff in the sales area 
B) To reduce the risk of accepting an uncreditworthy customer or incorrectly rejecting a creditworthy customer,it is important to independently maintain customer accounts and credit limits. 
C) Credit limits should be established based on desired sales targets. 
D) The Chief Financial Officer should overview all customer credit limits.

To bill a customer,the billing department must:

Which of the following statements relating to the creation of an invoice is correct?

A credit check requires the information of :

Which of the following technologies is not directly relevant to the revenue cycle?

EDI is mainly used to:

Which of the following documents is/are given to customers? (i)shipping notice (ii)sales invoice (iii)remittance advice (iv)goods packing slip.

A document that is prepared by the shipping officer in the logistics unit for the common carriers that transport the goods to the customer is:

Describe how the revenue cycle can benefit from technologies such as ERP,EDI and XML.

KW Ltd separates the billing and shipping functions and imposes independent checks to ensure that goods have been shipped prior to billing the customer.This is an example of:

Cycle performance should be measured,primarily,relative to:

EDI stands for:

A sales order is created by using ________ as the main source of information.

A status code is:

The objective of the accounts receivable phase in the revenue cycle is to:

In terms of ensuring payments for goods and services are correctly received,recorded and banked,which of the following is unlikely to be a KPI?

The calculation of inventory availability requires knowledge of: (i)current levels of stock on hand (ii)stock on order (iii)stock promised to customers (iv)supplier lead time.

The sales order is a formal document that is prepared mainly using:

Which of the following departments is not part of the revenue cycle?

CRM stands for:

Which of the following is true with regards to establishing credit limits for customers?

Systems Fundamentals

Systems Characteristics and Considerations

Database Concepts I

Database Concepts II

XBRL Reporting

System Mapping and Documentation

Internal Controls I

Internal Controls II

Transaction Cycle The Expenditure Cycle

Transaction Cycle The Production Cycle

Transaction Cycle The HR Management and Payroll Cycle

Transaction Cycle The General Ledger and Financial Reporting Cycle

Systems Development

Auditing of Accounting Information Systems

Ethics, fraud and Computer Crime

Filters

Exam 9: Transaction Cycle The Revenue Cycle

To bill a customer,the billing department must:

Which of the following statements relating to the creation of an invoice is correct?

A credit check requires the information of :

Which of the following technologies is not directly relevant to the revenue cycle?

EDI is mainly used to:

Which of the following documents is/are given to customers? (i)shipping notice (ii)sales invoice (iii)remittance advice (iv)goods packing slip.

A document that is prepared by the shipping officer in the logistics unit for the common carriers that transport the goods to the customer is:

Describe how the revenue cycle can benefit from technologies such as ERP,EDI and XML.

KW Ltd separates the billing and shipping functions and imposes independent checks to ensure that goods have been shipped prior to billing the customer.This is an example of:

Cycle performance should be measured,primarily,relative to:

EDI stands for:

A sales order is created by using ________ as the main source of information.

A status code is:

The objective of the accounts receivable phase in the revenue cycle is to:

In terms of ensuring payments for goods and services are correctly received,recorded and banked,which of the following is unlikely to be a KPI?

The calculation of inventory availability requires knowledge of: (i)current levels of stock on hand (ii)stock on order (iii)stock promised to customers (iv)supplier lead time.

The sales order is a formal document that is prepared mainly using:

Which of the following departments is not part of the revenue cycle?

CRM stands for:

Which of the following is true with regards to establishing credit limits for customers?

Systems Fundamentals

Systems Characteristics and Considerations

Database Concepts I

Database Concepts II

XBRL Reporting

System Mapping and Documentation

Internal Controls I

Internal Controls II

Transaction Cycle The Expenditure Cycle

Transaction Cycle The Production Cycle

Transaction Cycle The HR Management and Payroll Cycle

Transaction Cycle The General Ledger and Financial Reporting Cycle

Systems Development

Auditing of Accounting Information Systems

Ethics, fraud and Computer Crime

Filters