Deck 12: Marketing, Sales, and Collection Processes

Question 1

Robert & Son's Sunglasses, Inc. has been designing and manufactures sunglasses for sale through numerous independent retail outlets and also on their website: www.robertandsonsglasses.com. The sale of sunglasses through Robert and Son's website is an example of:
I. Business-to-consumer
II. Business-to-business

A) I is correct.
B) II is correct.
C) Neither I or II is correct.
D) Both I and II are correct.

Answer 1

I is correct.

Question 2

Robert & Son's Sunglasses, Inc. has been designing and manufactures sunglasses for sale through numerous independent retail outlets and also on their website: www.robertandsonsglasses.com. The sale of sunglasses to the independent retail outlets is an example of:
I. Business-to-consumer
II. Business-to-business

A) I is correct.
B) II is correct.
C) Neither I or II is correct.
D) Both I and II are correct.

Answer 2

II is correct.

Question 3

Diagrammed below are the high-level Business-to-Consumer activities for Julia's Cookies.
What is the activity labeled as A called?

A) Marketing
B) Sales
C) Cash collections
D) Delivery

Answer 3

Marketing

Question 4

Diagrammed below are the high-level Business-to-Consumer activities for Julia's Cookies.
What is the activity labeled as B called?

A) Marketing
B) Sales
C) Cash collections
D) Delivery

Question 5

Diagrammed below are the high-level Business-to-Consumer activities for Julia's Cookies.
What is the activity labeled as C called?

A) Marketing
B) Sales
C) Cash collections
D) Delivery

Question 6

Diagrammed below are the high-level Business-to-Consumer activities for Julia's Cookies.
What is the activity labeled as D called?

A) Marketing
B) Sales
C) Cash collections
D) Delivery

Question 7

Julia's Cookies has identified the following B2C marketing control activity risk: "An unauthorized user posting inappropriate content to the corporate social media accounts may result in legal or reputational damage." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Password logs only available to authorized users
B) Only cashless payments accepted in stores
C) Security cameras covering cash registers
D) Food tampering stickers or seals on delivery containers

Question 8

Julia's Cookies has identified the following B2C marketing control activity risk: "An unauthorized user posting inappropriate content to the corporate social media accounts may result in legal or reputational damage." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Only cashless payments accepted in stores
B) Social media posts subject to review and approval before posting
C) Security cameras covering cash registers
D) Food tampering stickers or seals on delivery containers

Question 9

Julia's Cookies has identified the following B2C cash collections control activity risk: "Cash passing between customers and cashiers may result in cashiers pocketing cash." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Password logs only available to authorized users
B) Social media posts subject to review and approval before posting
C) Only cashless payments accepted in stores
D) Food tampering stickers or seals on delivery containers

Question 10

Julia's Cookies has identified the following B2C cash collections control activity risk: "Cash passing between customers and cashiers may result in cashiers pocketing cash." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Password logs only available to authorized users
B) Social media posts subject to review and approval before posting
C) Food tampering stickers or seals on delivery containers
D) Security cameras covering cash registers

Question 11

Julia's Cookies has identified the following B2C delivery control activity risk: "Unprotected food during delivery may result in delivering a subpar product to customers, food contamination, or theft of product." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Password logs only available to authorized users
B) Social media posts subject to review and approval before posting
C) Only cashless payments accepted in stores
D) Food tampering stickers or seals on delivery containers

Question 12

Julia's Cookies has identified the following B2C delivery control activity risk: "Customers filing fictitious claims packages were not received may result in fraudulent refunds to customers." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Delivery drivers take photos of packages in their delivery locations which are sent to customers via email or text message.
B) Social media posts subject to review and approval before posting
C) Only cashless payments accepted in stores
D) Food tampering stickers or seals on delivery containers

Question 13

Julia's Cookies has identified the following B2C delivery control activity risk: "Customers filing fictitious claims that products were damaged upon receipt may result in fraudulent refunds to customers." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Refunds and returns require customers to submit a photo of the product condition.
B) Social media posts subject to review and approval before posting
C) Only cashless payments accepted in stores
D) Food tampering stickers or seals on delivery containers

Question 14

Cash collections for B2C customers usually occurs

A) at the time the sale is made.
B) on credit.
C) one week later.
D) one month later.

Question 15

B2C payments can be made with cash, checks, mobile payment apps, or credit cards, but they are referred to as ________ because the accounting transactions are all recorded to the ________ account on the balance sheet.

A) credit, debit
B) cash, cash
C) debit, cash
D) debit, credit

Question 16

________ is the oversight of the inventory lifecycle from purchase to sales.

A) Inventory management
B) Supply chain management
C) Customer relationship management
D) Enterprise resource planning

Question 17

________ oversees the lifecycle of a product from procuring raw materials through customer sales.

A) Inventory management
B) Supply chain management
C) Customer relationship management
D) Enterprise resource planning

Question 18

Inventory management is important because ________ and ________ determine inventory requirements, which in turn drives purchases of raw materials and supplies.

A) forecasts, raw materials
B) purchase orders, demand
C) sales orders, forecasts
D) raw materials, supplies

Question 19

Diagrammed below are the high-level Business-to-Business activities for Julia's Cookies.
What is the activity labeled as A called?

A) Marketing
B) Pricing and contracts
C) Sales
D) Shipping
E) Accounts Receivable

Question 20

Diagrammed below are the high-level Business-to-Business activities for Julia's Cookies.
What is the activity labeled as B called?

A) Marketing
B) Pricing and contracts
C) Sales
D) Shipping
E) Accounts Receivable

Question 21

Diagrammed below are the high-level Business-to-Business activities for Julia's Cookies.
What is the activity labeled as C called?

A) Marketing
B) Pricing and contracts
C) Sales
D) Shipping
E) Accounts Receivable

Question 22

Diagrammed below are the high-level Business-to-Business activities for Julia's Cookies.
What is the activity labeled as D called?

A) Marketing
B) Pricing and contracts
C) Sales
D) Shipping
E) Accounts Receivable

Question 23

Diagrammed below are the high-level Business-to-Business activities for Julia's Cookies.
What is the activity labeled as E called?

A) Marketing
B) Pricing and contracts
C) Sales
D) Shipping
E) Accounts Receivable

Question 24

Julia's Cookies has identified the following B2B marketing control activity risk: "Inconsistent marketing materials that provide unclear messaging, which may result in loss of customers and leads." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Standardized scripts and templates for marketing materials
B) Master marketing schedule is maintained and communicated to employees.
C) Independent checks on pricing and sales team member's work
D) Defined roles and responsibilities for pricing functions

Question 25

Julia's Cookies has identified the following B2B marketing control activity risk: "An unauthorized user may access the marketing database causing inappropriate access to sensitive data related to business customers and leads, resulting in legal and reputational damage." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Standardized scripts and templates for marketing materials
B) Policies and procedures for user access are clearly documented and authorized.
C) Independent checks on pricing and sales team member's work
D) Defined roles and responsibilities for pricing functions

Question 26

Julia's Cookies has identified the following B2B pricing control activity risk: "Collusion between an employee and a buyer may result in fraud activity and financial loss." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Standardized scripts and templates for marketing materials
B) Policies and procedures for user access are clearly documented and authorized.
C) Independent checks on pricing and sales team member's work
D) Defined roles and responsibilities for pricing functions

Question 27

Julia's Cookies has identified the following B2B pricing control activity risk: "Inappropriately given or unauthorized customer discounts may result in financial loss." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Standardized scripts and templates for marketing materials
B) Policies and procedures for user access are clearly documented and authorized.
C) Independent checks on pricing and sales team member's work
D) Defined roles and responsibilities for pricing functions

Question 28

________ are dependent on the customers' creditworthiness.

A) Credit terms
B) Debit terms
C) Sales orders
D) Purchase orders

Question 29

The determination and recording of ________, based on credit checks and payment history, must be checked before accepting an order from a customer.

A) credit terms
B) credit limits
C) debit terms
D) debit limits

Question 30

Julia's Cookies has identified the following B2B credit customer control activity risk: "Inadequate or inconsistently applied creditworthiness checking may result in excessive bad debts and a wide variety of credit terms." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Follow documented and authorized credit policies and procedures for all customers.
B) Review credit limits periodically and adjust if required.
C) Use standardized, authorized sales contracts that are legally enforceable.
D) Employee training covering appropriate and inappropriate wording when speaking with customers

Question 31

Julia's Cookies has identified the following B2B credit customer control activity risk: "Sales made to unreliable customers may result in unacceptable credit risks and excessive bad debts." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Clear communication notifying customers all agreements must be in writing to be legally binding
B) Review credit limits periodically and adjust them if required.
C) Use standardized, authorized sales contracts that are legally enforceable.
D) Employee training covering appropriate and inappropriate wording when speaking with customers

Question 32

Julia's Cookies has identified the following B2B sales contracts control activity risk: "Different prices for the same products sold to similar customers may result in customer dissatisfaction or be illegal and result in loss of reputation and penalties." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Follow documented and authorized credit policies and procedures for all customers.
B) Review credit limits periodically and adjust if required.
C) Use standardized, authorized sales contracts that are legally enforceable.
D) Employee training covering appropriate and inappropriate wording when speaking with customers

Question 33

Julia's Cookies has identified the following B2B sales contracts control activity risk: "Verbal agreements may result in a legally binding agreement with unfavorable outcomes." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Follow documented and authorized credit policies and procedures for all customers.
B) Review credit limits periodically and adjust if required.
C) Use standardized, authorized sales contracts that are legally enforceable.
D) Employee training covering appropriate and inappropriate wording when speaking with customers

Question 34

Julia's Cookies has identified the following B2B sales order control activity risk: "An unauthorized sales order may result in fraudulent or inappropriate sales." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) The ERP system matches the customer on the sales order to the main customer data.
B) The ERP system matches the amount of the sales order with the credit limit in the main customer data.
C) All shipments must have properly authorized shipping documents with an appropriate delivery address.
D) Restrict access to the shipping area.

Question 35

Julia's Cookies has identified the following B2B sales order control activity risk: "A sales order without credit approval or above the credit limit may result in uncollectible accounts." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) The ERP system matches the customer on the sales order to the customer master data.
B) The ERP system matches the amount of the sales order with the credit limit in the customer master data.
C) All shipments must have properly authorized shipping documents with an appropriate delivery address.
D) Restrict access to the shipping area.

Question 36

Julia's Cookies has identified the following B2B shipping control activity risk: "Shipments made to incorrect customers or locations may result in customer dissatisfaction, complaints, and financial losses." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) The ERP system matches the customer on the sales order to the customer master data.
B) The ERP system matches the amount of the sales order with the credit limit in the customer master data.
C) All shipments must have properly authorized shipping documents with an appropriate delivery address.
D) Restrict access to the shipping area.

Question 37

Julia's Cookies has identified the following B2B shipping control activity risk: "Lost or fraudulently diverted undelivered shipments may result in customer dissatisfaction, complaints, and financial losses." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) The ERP system matches the customer on the sales order to the main customer data.
B) The ERP system matches the amount of the sales order with the credit limit in the main customer data.
C) All shipments must have properly authorized shipping documents with an appropriate delivery address.
D) Restrict access to the shipping area.

Question 38

Julia's Cookies has identified the following B2B shipping control activity risk: "Shipping incorrect products or quantities may result in customer dissatisfaction, complaints, sales returns, and financial losses." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) The ERP system matches goods and quantities taken from the warehouse to approved sales orders.
B) The ERP system matches the amount of the sales order with the credit limit in the customer master data.
C) All shipments must have properly authorized shipping documents with an appropriate delivery address.
D) Restrict access to the shipping area.

Question 39

Julia's Cookies has identified the following B2B shipping control activity risk: "Lack of shipping documentation may result in inaccurate shipments, fraudulent shipments, or missed shipments." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) The ERP system matches the customer on the sales order to the customer master data.
B) The ERP system generates shipping documentation when the sales order is processed.
C) All shipments must have properly authorized shipping documents with an appropriate delivery address.
D) Restrict access to the shipping area.

Question 40

Select the best definition of revenue recognition from the list below.

A) A set of determined conditions that must be met to justify a business recognizing the revenue as earned
B) A set of determined conditions that must be met to justify a business recognizing the expenses as incurred
C) The oversight of inventory from purchase to sales
D) A system to oversee the lifecycle of a product from procuring raw materials through customer sales

Question 41

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. They are listed below. Properly order these five steps.
i. Recognize revenue when (or as) the entity satisfies a performance obligation.
ii. Determine the transaction price.
iii. Identify the contract with a customer.
iv. Allocate the transaction price to the performance obligations in the contract.
v. Identify the performance obligations in the contract.

A) i, ii, iii, iv, v
B) iii, v, ii, iv, i
C) v, iv, iii, ii, i
D) iv, iii, I, ii, v

Question 42

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 1 from the list below.

A) Recognize revenue when (or as) the entity satisfies a performance obligation.
B) Determine the transaction price.
C) Identify the contract with a customer.
D) Allocate the transaction price to the performance obligations in the contract.
E) Identify the performance obligations in the contract.

Question 43

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 2 from the list below.

A) Recognize revenue when (or as) the entity satisfies a performance obligation.
B) Determine the transaction price.
C) Identify the contract with a customer.
D) Allocate the transaction price to the performance obligations in the contract.
E) Identify the performance obligations in the contract.

Question 44

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 3 from the list below.

A) Recognize revenue when (or as) the entity satisfies a performance obligation.
B) Determine the transaction price.
C) Identify the contract with a customer.
D) Allocate the transaction price to the performance obligations in the contract.
E) Identify the performance obligations in the contract.

Question 45

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 4 from the list below.

A) Recognize revenue when (or as) the entity satisfies a performance obligation.
B) Determine the transaction price.
C) Identify the contract with a customer.
D) Allocate the transaction price to the performance obligations in the contract.
E) Identify the performance obligations in the contract.

Question 46

The Accounting Standards Codification 606 of the U.S. GAAP has five steps for revenue recognition. Choose step 5 from the list below.

A) Recognize revenue when (or as) the entity satisfies a performance obligation.
B) Determine the transaction price.
C) Identify the contract with a customer.
D) Allocate the transaction price to the performance obligations in the contract.
E) Identify the performance obligations in the contract.

Question 47

Julia's Cookies has identified the following revenue recognition misstatement control activity risk: "Improper revenue recognition may result in incorrect recordings during a reporting period and misstatement of financial statements." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Strict enforcement of the company's sales cutoff policy
B) Reconcile totals for invoices to gross sales in the general ledger to verify completeness and accuracy.
C) Segregate billing function from shipping and accounts receivable functions.
D) Review accounts receivable periodically including write-offs and aging.

Question 48

Julia's Cookies has identified the following revenue recognition misstatement control activity risk: "Sales billed to customers that are not recorded as revenue in the general ledger may result in misstatement of financial statements." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Strict enforcement of the company's sales cutoff policy
B) Reconcile totals for invoices to gross sales in the general ledger to verify completeness and accuracy.
C) Segregate billing function from shipping and accounts receivable functions.
D) Review accounts receivable periodically including write-offs and aging.

Question 49

Julia's Cookies has identified the following revenue recognition misstatement control activity risk: "Sales to customers not resulting in billing or recognizing the revenue may result in loss of cash because customers may never pay, leading to misstatement of financial statements." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Strict enforcement of the company's sales cutoff policy
B) Reconcile totals for invoices to gross sales in the general ledger to verify completeness and accuracy.
C) Segregate billing function from shipping and accounts receivable functions.
D) Review accounts receivable periodically including write-offs and aging.

Question 50

Julia's Cookies has identified the following revenue recognition fraud control activity risk: "Fictitious sales may result in overstatement of revenues (a credit) and receivables (a debit) or understatement of expenses (a debit)." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Strict enforcement of the company's sales cutoff policy
B) Reconcile totals for invoices to gross sales in the general ledger to verify completeness and accuracy.
C) Segregate billing function from shipping and accounts receivable functions.
D) Review accounts receivable periodically including write-offs and aging.

Question 51

Julia's Cookies has identified the following revenue recognition fraud control activity risk: "Sales returns and credits and adjustments made for returns not properly recorded may result in misstatements in accounting records." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Review returns, credits, and adjustments to determine timing for revenue recognition.
B) Reconcile totals for invoices to gross sales in the general ledger to verify completeness and accuracy.
C) Segregate billing function from shipping and accounts receivable functions.
D) Review accounts receivable periodically including write-offs and aging.

Question 52

Julia's Cookies has identified the following revenue recognition fraud control activity risk: "Sales invoices with incorrect quantities and/or prices may result in misstatement of sales revenue and accounts receivable." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Review returns, credits, and adjustments to determine timing and revenue recognition.
B) Match the sales invoice quantities to the shipping information and the prices to the sales contract or main price list.
C) Segregate billing function from shipping and accounts receivable functions.
D) Review accounts receivable periodically including write-offs and again.

Question 53

Julia's Cookies has identified the following revenue recognition fraud control activity risk: "Shipping more products to retailers or distributors than they are capable of selling near the end of a reporting period may result in an inflated statement of revenue and channel stuffing fraud." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Review returns, credits, and adjustments to determine timing and revenue recognition.
B) Match the sales invoice quantities to the shipping information and the prices to the sales contract or master price list.
C) Avoid setting unrealistic bonus targets to remove incentive for fraud and consider other forms of compensation and the right balance between revenue targets and incentivizing employees.
D) Review accounts receivable periodically including write-offs and aging.

Question 54

Jim walks into Starbucks, places an order at the counter, pays at the cash register and receives his cup of coffee. Choose from the list below the appropriate type of payment method that Jim has partaken in?

A) Cash sale (B2C)
B) Advance payment (B2C or B2B)
C) Credit sale (B2B)
D) Debit sale (B2C)

Question 55

RAM Manufacturing, Inc. pays for purchases at the time of order, even though items sold by the supplier have not yet been packaged or shipped. Choose from the list below the appropriate type of payment method that RAM Manufacturing has partaken in?

A) Cash sale (B2C)
B) Advance payment (B2C or B2B)
C) Credit sale (B2B)
D) Debit sale (B2C)

Question 56

RAM Manufacturing, Inc. orders cardboard boxes from a corrugated box manufacturer. RAM Manufacturing will use the boxes to ship their products to their customers. The box manufacturer begins fulfilling the order for boxes before RAM Manufacturing pays for the order. Choose from the list below the appropriate type of payment method that RAM Manufacturing has partaken in.

A) Cash sale (B2C)
B) Advance payment (B2C or B2B)
C) Credit sale (B2B)
D) Debit sale (B2C)

Question 57

Julia's Cookies has identified the following cash receipt control activity risk: "Checks received in the mail that are lost or misappropriated after receipt may result in financials loss and customer dissatisfaction." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Implement electronic funds transfer directly to the company's bank account or a lockbox system.
B) Perform independent check of remittance advices from customers against daily remittance list.
C) Automated calculation of discounts
D) Regular independent bank reconciliations with management review

Question 58

Julia's Cookies has identified the following cash receipt control activity risk: "Checks received in the mail that are lost or misappropriated after receipt may result in financials loss and customer dissatisfaction." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Perform independent check of remittance advices from customers against daily remittance list.
B) Prepare a daily remittance list immediately upon opening mail and restrictively endorse checks.
C) Automated calculation of discounts
D) Regular independent bank reconciliations with management review

Question 59

Julia's Cookies has identified the following cash receipt control activity risk: "Checks received in the mail that are lost or misappropriated after receipt may result in financials loss and customer dissatisfaction." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Perform independent check of remittance advices from customers against daily remittance list.
B) Automated calculation of discounts
C) Deposit checks received in the mail daily.
D) Regular independent bank reconciliations with management review

Question 60

Julia's Cookies has identified the following cash receipt control activity risk: "Checks received in the mail that do not agree with the daily remittance list may result in misstatement of financial statements and incorrect accounts receivable records." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Automated calculation of discounts
B) Deposit checks received in the mail daily.
C) Regular independent bank reconciliations with management review
D) Perform independent check of remittance advices from customers against daily remittance list.

Question 61

Julia's Cookies has identified the following cash receipt control activity risk: "Cash discounts taken by customers that are incorrect may result in loss of profit and future cash receipts." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Automated calculation of discounts
B) Deposit checks received in the mail daily.
C) Regular independent bank reconciliations with management review
D) Perform independent check of remittance advices from customers against daily remittance list

Question 62

Julia's Cookies has identified the following cash deposit control activity risk: "Checks received in the mail that are not deposited intact may result in missing cash." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Automated calculation of discounts
B) Regular independent bank reconciliations with management review
C) Deposit checks received in the mail daily.
D) Perform independent check of remittance advices from customers against daily remittance list.

Question 63

Julia's Cookies has identified the following cash deposit control activity risk: "Checks received in the mail that are not deposited intact may result in missing cash." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Automated calculation of discounts
B) Deposit checks received in the mail daily.
C) Implement electronic funds transfer directly to the company's bank account or a lockbox system.
D) Perform independent check of remittance advices from customers against daily remittance list.

Question 64

A(n) ________ is a P.O. box that can only be accessed by the company's bank. The bank collects the checks daily, deposits them into the company bank account, and sends source documents to the company.

A) lockbox
B) bank remittance report
C) deposit slip
D) electronic funds transfer

Question 65

A(n) ________ is a source document that the bank sends of the daily listings of each check received from the customers.

A) lockbox
B) bank remittance report
C) deposit slip
D) electronic funds transfer

Question 66

A(n) ________ is a source document that serves as proof of the amount deposited into the company's account, with the amount of the deposit equal to the total of the bank remittance report.

A) lockbox
B) bank remittance report
C) deposit slip
D) electronic funds transfer

Question 67

A(n) ________ transfers the payment from the customer's bank account directly into the company's bank account.

A) lockbox
B) bank remittance report
C) deposit slip
D) EFT

Question 68

Julia's Cookies has identified the following recording cash receipts control activity risk: "Recording inflated receipts from customers may result in overstated revenues." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Perform monthly bank reconciliations with management review.
B) Implement electronic funds transfer directly to the company's bank account or a lockbox system.
C) Regular independent bank reconciliations with management review
D) Perform independent check of remittance advices from customers against daily remittance list.

Question 69

Julia's Cookies has identified the following recording cash receipts control activity risk: "Recording inflated receipts from customers may result in overstated revenues." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Automated calculation of discounts
B) Mail monthly statements to customers and investigate and fix discrepancies reported in a timely manner.
C) Regular independent bank reconciliations with management review
D) Perform independent check of remittance advices from customers against daily remittance list.

Question 70

Julia's Cookies has identified the following recording cash receipts control activity risk: "Receipts posted to the incorrect customer account may result in customer dissatisfaction." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Automated calculation of discounts
B) Regular independent bank reconciliations with management review
C) Mail monthly statements to customers and investigate and fix discrepancies reported in a timely manner.
D) Perform independent check of remittance advices from customers against daily remittance list.

Question 71

Electronic payment data is transmitted through the ________, which is an electronic system serving financial institutions. It facilitates financial transactions in the U.S.

A) lockboxes
B) bank remittance reports
C) Financial Electronic Data Interchange (FEDI)
D) Automated Clearing House (ACH) Network

Question 72

Which of the following ERP modules is responsible for the accounts receivable function?

A) Financial
B) Sales Management
C) Customer Relationship Management
D) Supply Chain Management

Question 73

Which of the following ERP modules is responsible for the shipment of the product function?

A) Financial
B) Sales Management
C) Customer Relationship Management
D) Supply Chain Management

Question 74

Which of the following ERP modules is responsible for the marketing management function?

A) Financial
B) Sales Management
C) Customer Relationship Management
D) Supply Chain Management

Question 75

Reference the entity relationship diagram of the marketing, sales, and collection ERP modules below.
What is the relationship between Sales_Order and Sales_OrderLineItem?

A) One-to-One
B) One-to-Many
C) Many-to-Many
D) Many-to-One

Question 76

Reference the entity relationship diagram of the marketing, sales, and collection ERP modules below.
What is the relationship between Sales_Order and Shipment?

A) One-to-One
B) One-to-Many
C) Many-to-Many
D) Many-to-One

Question 77

Reference the entity relationship diagram of the marketing, sales, and collection ERP modules below.
What is the relationship between CRM_Customer and Sales_Order?

A) One-to-One
B) One-to-Many
C) Many-to-Many
D) Many-to-One

Question 78

Reference the entity relationship diagram of the marketing, sales, and collection ERP modules below.
What is the primary key of the Sales_Order entity?

A) SalesOrder_ID
B) SalesOrder_Date
C) Customer_ID
D) ShipmentMethod

Question 79

Reference the entity relationship diagram of the marketing, sales, and collection ERP modules below.
What is the foreign key in the Sales_OrderLineItem entity that establishes the relationship with the Sales_Order entity?

A) SalesLine_ID
B) SalesOrder_ID
C) Inventory_ID
D) Quantity
E) Price

Question 80

Reference the entity relationship diagram of the marketing, sales, and collection ERP modules below.
What is the foreign key in the Sales_Order entity that establishes the relationship with the CRM_Customers entity?

A) SalesOrder_ID
B) SalesOrder_Date
C) Customer_ID
D) ShipmentMethod