Exam 10: The Revenue Cycle: Sales an Cash Collections

Laz Chance wears roller blades and headphones when he is at work at the Squishy Things Toy Company.He is a product packer.The headphones give him computer-generated instructions so he knows the location of each item and quantity that should be included in the order.These instructions are the equivalent of a

Which of the following poses an internal control problem?

What is cycle billing?

When an ERP is used,it is assumed that there will be increases in efficiency and the effectiveness of the activities related to the revenue cycle.However,what must be in place and functioning well to fully realize these benefits?

In billing and accounts receivable,what documents are commonly used?

A customer returns a document along with cash payment.The document identifies the source and the amount of the cash payment.It is called a

A system where the bank electronically notifies a company about customers' remittances received through the postal system is known an

It has been discovered that credit sales have been made to customers with a poor credit rating.If this activity continues,the company may face uncollectible sales and losses due to bad debts.What applicable control procedure may help the company to gain control over this situation?

Discuss the general control issue of the loss of data as it relates to the revenue cycle.

Identify two ways in which the use of choiceboards can improve a company's cash flow.

Because it is the most fungible of all assets,the management of cash has always been the most difficult of all control issues.The most important of cash controls is

The activities involved in soliciting and processing customer orders within the revenue cycle are known as the __________.

A company uses an invoice method whereby customers typically pay according to each invoice.This is the __________ method.

Sad Clown Pajamas is an Internet-based wholesaler.Customers enter their orders online.The manager of Callow Youth Clothing was entering and order when the following error message popped up: Please enter your email address.This message is the result of a

The shipping department at Squishy Things Toy Company follows policies that determine which carrier will deliver orders according to the size,weight,and destination of the shipment.It maintains standing agreements with shippers that specify legal responsibility for the shipment while it is in transit.The terms of the agreements define an order's

Many Internet retailers allow customers to customize products by presenting them with various alternative options.These interactive sales order entry systems are called

Explain how validity checks,completeness tests and reasonableness tests can be users to ensure accuracy of customer ordes.

One applicable control procedure is to separate the shipping and billing functions within an organization.This control feature is designed to neutralize the threat of

Which of the following would be the least effective control to minimize the loss of inventory?

How can EDI help the billing and account receivable process?