Question 1

The acknowledgement of customer payments using a receipt or monthly statement is optional.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following activities is optional in the customer order business management process?

Accepted Answer

A)  Order entry 
B)  Contract creation 
C)  Shipping 
D)  Billing 
A)  Order entry 
B)  Contract creation 
C)  Shipping 
D)  Billing

Question 3

Sarbanes-Oxley Act of 2002 requires companies maintain an adequate ________ structure over the business processes that support financial reporting.

Accepted Answer

A)  risk assessment 
B)  internal control 
C)  assurance assessment 
D)  reliability process 
A)  risk assessment 
B)  internal control 
C)  assurance assessment 
D)  reliability process

Question 4

A sales order is

Accepted Answer

A)  the same as the purchase order. 
B)  an external use document. 
C)  an internal use document. 
D)  optional when selling to established customers. 
A)  the same as the purchase order. 
B)  an external use document. 
C)  an internal use document. 
D)  optional when selling to established customers.

Question 5

National Auto Loan has customers throughout the 48 contiguous states.Its current policy is to have all customers mail their payments to National Auto's corporate office located in Lansing,Michigan.It is considering a regional lock-box system to collect loan payments from its customers.Changing to a regional lock-box system will decrease the company's float time from eight days (on average)to three days.The company's average daily collection is $1,750,000.The bank that operates the regional lock-box system requires compensating balances totaling $800,000.Annual fees and expenses associated with the lock-box system are $350,000.
Required:
a.Compute the dollar amount of net funds freed if National Auto uses the lock-box system.
b.Compute the percentage rate of net funds freed.

Accepted Answer

a.@#IMG-DLM&
b.Cost of net fun

Question 6

A contract to provide goods or services over a period of time is sometimes called a(n)________ ________.

Accepted Answer

The answer of A contract to provide goods or services...

Question 7

To provide an adequate separation of functions in the accounts receivable business process,maintaining the accounts receivable control account should be the responsibility of

Accepted Answer

A)  billing. 
B)  accounts receivable. 
C)  cash receipts. 
D)  general ledger. 
A)  billing. 
B)  accounts receivable. 
C)  cash receipts. 
D)  general ledger.

Question 8

In ________ processing,a separate record is maintained in the accounts receivable system for each of the customer's unpaid invoices.

Accepted Answer

The answer of In ________ processing,a separate record is maintained...

Question 9

Selling accounts receivable at a discount to a collection agency is part of a company's cycle billing plan.

Accepted Answer

A) True 
 B)False

Question 10

Why should management or an organizational function that is independent of the sales order function,prepare the master price list?

Accepted Answer

The sales order application's purpose

Question 11

Presented below is a list of terms relating to accounting information systems,followed by definitions of those terms.
Required: Match the letter next to each definition with the appropriate term.Each answer will be used only once.
________ 1.Imprest techniques
________ 2.Factoring
________ 3.Blanket order
________ 4.Customer audit
________ 5.Cycle billing
________ 6.Professional shoppers
________ 7.Lock-box deposit system
________ 8.Bill
________ 9.Shipping advice
________ 10.Quotation
A.A single order which calls for several shipments to the same customer over a specific period of time
B.The selling of accounts receivable at a discount to a collection agency
C.People hired to purchase goods in a retail environment for the specific purpose of observing the recording of transactions
D.A synonym for "goods issue notice"
E.The processing of accounts receivable,subdivided by alphabet or account number in order to distribute the preparation of statements over the working days of the month
F.A control technique in which an item is held accountable to a specified total amount
G.A procedure in which the customer acts as a control over the initial documentation of a transaction
H.A document sent to a potential customer to inform them of product prices,availability,and delivery information
I.Customer remittances are sent directly to a bank and are credited to a company's account before they are posted to customer accounts
J.Another name for an invoice

Accepted Answer

1.F,2.B,3.

Question 12

Cash sales should be recorded in a cash register or other secure device that can provide immediate documentation of the sales.

Accepted Answer

A) True 
 B)False

Question 13

The Incoterms field is found in the "create customer" taxes screen.

Accepted Answer

A) True 
 B)False

Question 14

The Bad Luck Fortune Cookie Company has a 360-day past-due balance of $1,300.00.After repeated attempts at collection,the account is deemed worthless.The departments involved with processing this transaction up to the point of issuing an approved write-off memo are the

Accepted Answer

A)  credit and accounts receivable departments. 
B)  treasurer, billing, and accounts receivable departments. 
C)  credit, treasurer, accounts receivable, and internal audit departments. 
D)  credit, treasurer, cash receipts, and internal audit departments. 
A)  credit and accounts receivable departments. 
B)  treasurer, billing, and accounts receivable departments. 
C)  credit, treasurer, accounts receivable, and internal audit departments. 
D)  credit, treasurer, cash receipts, and internal audit departments.

Question 15

A credit check is only necessary when selling to new customers.

Accepted Answer

A) True 
 B)False

Question 16

An example of a(n)________ technique is a clerk who is given a precounted number of tickets and held responsible for either the retail value of the tickets or the tickets themselves.

Accepted Answer

The answer of An example of a(n)________ technique is a...

Question 17

The ________ contains much of the information found in a sales order.

Accepted Answer

The answer of The ________ contains much of the information...

Question 18

Which of the screens listed below in SAP ERP system is not optional when a company records information relating to a sale?

Accepted Answer

A)  Pricing 
B)  Create sales order 
C)  Business data header 
D)  Scheduling 
A)  Pricing 
B)  Create sales order 
C)  Business data header 
D)  Scheduling

Question 19

In the "create sales order" screen,the date input into the "PO Date" field is always the same as the order date.

Accepted Answer

A) True 
 B)False

Question 20

To control incoming cash from the mail and ensure an accurate accounting,the department which should have complete control over the transaction is the

Accepted Answer

A)  mailroom. 
B)  cash receipts. 
C)  accounts receivable. 
D)  No one department should have complete control over incoming cash 
A)  mailroom. 
B)  cash receipts. 
C)  accounts receivable. 
D)  No one department should have complete control over incoming cash

The acknowledgement of customer payments using a receipt or monthly statement is optional.

Which of the following activities is optional in the customer order business management process?

Sarbanes-Oxley Act of 2002 requires companies maintain an adequate ________ structure over the business processes that support financial reporting.

A sales order is

A contract to provide goods or services over a period of time is sometimes called a(n) .

To provide an adequate separation of functions in the accounts receivable business process,maintaining the accounts receivable control account should be the responsibility of

In ________ processing,a separate record is maintained in the accounts receivable system for each of the customer's unpaid invoices.

Selling accounts receivable at a discount to a collection agency is part of a company's cycle billing plan.

Why should management or an organizational function that is independent of the sales order function,prepare the master price list?

Cash sales should be recorded in a cash register or other secure device that can provide immediate documentation of the sales.

The Incoterms field is found in the "create customer" taxes screen.

The Bad Luck Fortune Cookie Company has a 360-day past-due balance of $1,300.00.After repeated attempts at collection,the account is deemed worthless.The departments involved with processing this transaction up to the point of issuing an approved write-off memo are the

A credit check is only necessary when selling to new customers.

An example of a(n)________ technique is a clerk who is given a precounted number of tickets and held responsible for either the retail value of the tickets or the tickets themselves.

The ________ contains much of the information found in a sales order.

Which of the screens listed below in SAP ERP system is not optional when a company records information relating to a sale?

In the "create sales order" screen,the date input into the "PO Date" field is always the same as the order date.

To control incoming cash from the mail and ensure an accurate accounting,the department which should have complete control over the transaction is the

Accounting Information Systems: An Overview

Systems Techniques and Documentation

Ebusiness and Ecommerce

Transaction Processing and the Internal Control Process

Fraud Examination and Fraud Management

Information Systems Security

Electronic Data Processing Systems

Procurement and Human Resources Business Processes

The Production Business Process

Systems Planning, analysis, and Design

Systems Project Management, implementation, operation, control

Data Management Concepts

Auditing Information Technology

Filters

Exam 8: Revenue Cycle Processes

The acknowledgement of customer payments using a receipt or monthly statement is optional.

Which of the following activities is optional in the customer order business management process?

Sarbanes-Oxley Act of 2002 requires companies maintain an adequate ________ structure over the business processes that support financial reporting.

A sales order is

A contract to provide goods or services over a period of time is sometimes called a(n)________ ________.

To provide an adequate separation of functions in the accounts receivable business process,maintaining the accounts receivable control account should be the responsibility of

In ________ processing,a separate record is maintained in the accounts receivable system for each of the customer's unpaid invoices.

Selling accounts receivable at a discount to a collection agency is part of a company's cycle billing plan.

Why should management or an organizational function that is independent of the sales order function,prepare the master price list?

Cash sales should be recorded in a cash register or other secure device that can provide immediate documentation of the sales.

The Incoterms field is found in the "create customer" taxes screen.

The Bad Luck Fortune Cookie Company has a 360-day past-due balance of $1,300.00.After repeated attempts at collection,the account is deemed worthless.The departments involved with processing this transaction up to the point of issuing an approved write-off memo are the

A credit check is only necessary when selling to new customers.

An example of a(n)________ technique is a clerk who is given a precounted number of tickets and held responsible for either the retail value of the tickets or the tickets themselves.

The ________ contains much of the information found in a sales order.

Which of the screens listed below in SAP ERP system is not optional when a company records information relating to a sale?

In the "create sales order" screen,the date input into the "PO Date" field is always the same as the order date.

To control incoming cash from the mail and ensure an accurate accounting,the department which should have complete control over the transaction is the

Accounting Information Systems: An Overview

Systems Techniques and Documentation

Ebusiness and Ecommerce

Transaction Processing and the Internal Control Process

Fraud Examination and Fraud Management

Information Systems Security

Electronic Data Processing Systems

Procurement and Human Resources Business Processes

The Production Business Process

Systems Planning, analysis, and Design

Systems Project Management, implementation, operation, control

Data Management Concepts

Auditing Information Technology

Filters

A contract to provide goods or services over a period of time is sometimes called a(n) .