Deck 5: Business Processes: Purchasing, Sales, and Payroll Cycles

Question 1

The stages approach to customization involves customizing and installing customer, vendor, employee, and remaining modules for the entire enterprise at the same time.

Answer 1

False

Question 2

Programming to customize the baseline system carry forward into later versions, saving some enterprises millions of dollars for customizations that do not need to be abandoned or redone.

Answer 2

False

Question 3

As business processes for a new system are planned, workflow management is not considered.

Answer 3

False

Question 4

Each step in the business process and workflow must be documented.

Question 5

Customizing a baseline accounting system can prove costly with unexpected cost overruns and delays.

Question 6

When customizing an accounting system, order in which work is performed must be considered.

Question 7

In a gap analysis, the gap between the baseline modules and the customization required to meet enterprise-specific needs is analyzed.

Question 8

By changing business processes to match the baseline system, a company can expect to increase the need for custom programming.

Question 9

A ________ identifies the differences between the baseline modules and the customization required to meet enterprise-specific needs.

Question 10

Troubleshooting a complex system is easier to accomplish when entering a company's busy season.

Question 11

The ________ approach to customization involves customizing and installing customer, vendor, employee, and remaining modules for the entire enterprise at the same time.

Question 12

The advantage to the ________ approach is that the new system goes live all at once.

Question 13

The advantage to the ________ approach is the ability to test and resolve issues on a smaller scale.

Question 14

Whether you use the big bang or stages approach when customizing an accounting system, ________ must be considered.

Question 15

The ________ approach customizes one module or geographic location at a time, stage by stage, until the entire enterprise has been converted to the new system.

Question 16

________ provides a workflow management system that automatically forwards documents to the next user in the workflow.

Question 17

The baseline accounting system can be customized using ________ to document the enterprise's business processes.

Question 18

When using the big bang approach, timing of the implementation can play a crucial role in its success.

Question 19

The disadvantage to the ________ approach is that the time line for such a project may seem prolonged.

Question 20

The enormity of installing an enterprise system for a huge enterprise can be overwhelming in terms of resources and ________.

Question 21

A gap analysis is done to

A)Identify the company's current business processes
B)Help employees adjust to the new system
C)Compare the baseline accounting system to the customized accounting system that meets the company's needs
D)Conform business processes to regulatory requirements

Question 22

When data flow is shown going into or from a database table on the DFD, data will be entered, updated, and retrieved using database field contents within the table.

Question 23

Acme Sales Narrative
Acme sells widgets online to other businesses. Acme customers place an online order. Acme processes the customer order by verifying with the accounting department that the customer's credit is in good standing with the company (the customer's account is paid on time). The items are verified for availability. The shipment is processed and sent to the customer's warehouse. An invoice is generated from the sales information and emailed to the customer. The corresponding database tables are updated.
The Create Invoices and Receive Customer Payments are in which baseline accounting system module?

A)Customers
B)Vendors
C)Employees
D)Banking

Question 24

Changing their business processes to match the baseline system, the enterprises eliminated the need for costly custom ________.

Question 25

A database designer or other IT professional, may want to put the customer balance as a field in the Customer table to speed up retrieval.

Question 26

Acme Sales Narrative
Acme sells widgets online to other businesses. Acme customers place an online order. Acme processes the customer order by verifying with the accounting department that the customer's credit is in good standing with the company (the customer's account is paid on time). The items are verified for availability. The shipment is processed and sent to the customer's warehouse. An invoice is generated from the sales information and emailed to the customer. The corresponding database tables are updated.
What are the processes in the Acme Sales Narrative?

A)Verify customer's credit, Send shipment to customer, Generate invoice
B)Verify customer's credit, Verify item availability, Update the database tables
C)Process customer order, Process shipping, Generate invoice
D)Receive customer's order, verify customer's credit, Send shipment to customer

Question 27

Acme Sales Narrative
Acme sells widgets online to other businesses. Acme customers place an online order. Acme processes the customer order by verifying with the accounting department that the customer's credit is in good standing with the company (the customer's account is paid on time). The items are verified for availability. The shipment is processed and sent to the customer's warehouse. An invoice is generated from the sales information and emailed to the customer. The corresponding database tables are updated.
When depositing a customer payment, which table is usually not used?

A)Cash Account table
B)General Ledger table
C)Sales Order table
D)Customer table

Question 28

As business processes for a new system are planned, ________ management is also considered.

Question 29

EspressoCoffee Receive Customer Payment DFD
List the agents in the EspressoCoffee Receive Customer Payment DFD.

Question 30

Acme Sales Narrative
Acme sells widgets online to other businesses. Acme customers place an online order. Acme processes the customer order by verifying with the accounting department that the customer's credit is in good standing with the company (the customer's account is paid on time). The items are verified for availability. The shipment is processed and sent to the customer's warehouse. An invoice is generated from the sales information and emailed to the customer. The corresponding database tables are updated.
What are the datastores (database tables)in the Acme Sales Narrative?

A)Customer Purchase Order, Accounts Receivable, Item
B)Customer, Sales Order, Sales Order Line, Item
C)Customer, Sales Order, Accounts Receivable, Item
D)Customer, Purchase Order, Purchase Line, Item

Question 31

Acme Sales Narrative
Acme sells widgets online to other businesses. Acme customers place an online order. Acme processes the customer order by verifying with the accounting department that the customer's credit is in good standing with the company (the customer's account is paid on time). The items are verified for availability. The shipment is processed and sent to the customer's warehouse. An invoice is generated from the sales information and emailed to the customer. The corresponding database tables are updated.
When recording a customer payment, which table is usually not used?

A)Customer table
B)Cash Receipts table
C)Sales Order table
D)Sales Order Line table

Question 32

EspressoCoffee Receive Customer Payment DFD
List the events in the EspressoCoffee Receive Customer Payment DFD.

Question 33

The big bang approach to customization involves

A)Piloting modules, testing, and resolving issues before moving on the next subsystem
B)Resolving issues on a small scale
C)Customizing and installing one module at a time
D)Customizing and installing all the modules for the company at the same time

Question 34

What is the stages approach to customizing an accounting system? What are the advantages and disadvantages?

Question 35

A workflow management system

A)Is not as efficient as a manual system
B)Automatically forwards electronics document to the next step in the business process
C)Is more cost effective than a DFD system
D)Is another way to document business processes

Question 36

In the banking module, the event that relates to the sales cycle is ________.

Question 37

What is a workflow management system? Provide an example.

Question 38

What is the big bang approach to customizing an accounting system? What are the advantages and disadvantages?

Question 39

Acme Sales Narrative
Acme sells widgets online to other businesses. Acme customers place an online order. Acme processes the customer order by verifying with the accounting department that the customer's credit is in good standing with the company (the customer's account is paid on time). The items are verified for availability. The shipment is processed and sent to the customer's warehouse. An invoice is generated from the sales information and emailed to the customer. The corresponding database tables are updated.
Who are the agents in the Acme Sales Narrative?

A)Customer, Accounting Department, Warehouse
B)Customer, Credit Card Company, Warehouse
C)Bank, Warehouse, Credit Card Company
D)Acme, Bank, Warehouse

Question 40

A system that automates workflow by automatically forwarding the electronic document to the next step in the business process is called a ________.

Question 41

EspressoCoffee Receive Customer Payment DFD
List the data flows in the EspressoCoffee Receive Customer Payment DFD.

Question 42

Spice House Cash Deposit Narrative
When Spice House makes cash deposits, the manager counts the cash and creates a deposit slip. The database tables are automatically updated.
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
Create a DFD for the Spice House Cash Deposit narrative.

Question 43

EspressoCoffee Make Deposit DFD
List the events in the EspressoCoffee Make Deposit DFD.

Question 44

Computer software may be programmed to run at a specific time each day to perform a task, such as, checking inventory stock levels.

Question 45

EspressoCoffee Make Deposit DFD
Create an EAD table for EspressoCoffee Make Deposit DFD.

Question 46

EspressoCoffee Receive Customer Payment DFD
Create an EAD table for EspressoCoffee Receive Customer Payment DFD.

Question 47

Spice House Cash Sale Narrative
When the Spice House makes a cash sale, a sales receipt is generated and the employee gives the customer the receipt and the items. The database tables are automatically updated.
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
Create an EAD table for the Spice House Cash Sale narrative.

Question 48

Spice House Cash Deposit Narrative
When Spice House makes cash deposits, the manager counts the cash and creates a deposit slip. The database tables are automatically updated.
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
Annotate the Spice House Cash Deposit narrative.

Question 49

The database tables used in the purchase order process are the same tables used in the sales processes.

Question 50

The vendor is notified when a discrepancy is found between the items received and the purchase order.

Question 51

In the banking module, the event that relates to the purchasing cycle is ________.

Question 52

When a bill is paid, the accountant's personal checking account is reduced for the amount of the payment.

Question 53

Spice House Cash Deposit Narrative
When Spice House makes cash deposits, the manager counts the cash and creates a deposit slip. The database tables are automatically updated.
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
Create an EAD table for the Spice House Cash Deposit narrative.

Question 54

EspressoCoffee Make Deposit DFD
List the agents in the EspressoCoffee Make Deposit DFD.

Question 55

EspressoCoffee Make Deposit DFD
List the datastores in the EspressoCoffee Make Deposit DFD.

Question 56

Spice House Cash Sale Narrative
When the Spice House makes a cash sale, a sales receipt is generated and the employee gives the customer the receipt and the items. The database tables are automatically updated.
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
Annotate the Spice House Cash Payment narrative.

Question 57

Typically, vendors mail the bill separately from the items shipped.

Question 58

Spice House Cash Sale Narrative
When the Spice House makes a cash sale, a sales receipt is generated and the employee gives the customer the receipt and the items. The database tables are automatically updated.
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
Create a DFD for the Spice House Cash Sale narrative.

Question 59

The Purchase Order Line table is an intersection table required to eliminate the many-to-many relationship between the Purchase Order table and the Item table.

Question 60

EspressoCoffee Make Deposit DFD
What DFD level is the EspressoCoffee Make Deposit DFD? How do you know this?

Question 61

Bill Payment DFD
What DFD level is the Bill Payment DFD?

A)Level-2
B)Level-4
C)Level-0
D)Level-1

Question 62

Acme Purchase Narrative
Acme needs to purchase more copper to make widgets. Acme submits an order to the copper vendor online. When Acme receives the copper shipment, the receiving department processes the shipment. Acme receives an invoice and processes the bill. The corresponding database tables are updated.
What are the datastores (database tables)in the Acme Purchase Narrative?

A)Vendor, Purchase order, Purchase order line, Item
B)Vendor, Invoice, Invoice line, Item
C)Vendor, Sales order, Sales order line, Item
D)Vendor Purchase order, Accounts payable, Item

Question 63

Bill Payment DFD
Which agent in the Bill Payment DFD is considered an internal agent?

A)Accountant
B)Vendor
C)Bank
D)Both A and C

Question 64

Spice House Receive Items Narrative
When Spice House receives the inventory items from the vendor, an employee verifies the items listed on the packing slip with the items listed on the purchase order. Then another employee records the items received and database tables are updated. Spice House generates a receiving report and an exception report listing items on the purchase order that have not been received. The reports are sent to the account (receiving report)and the vendor (exception report).
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
The ________ module consists of transactions related to payroll.

Question 65

Spice House Receive Items Narrative
When Spice House receives the inventory items from the vendor, an employee verifies the items listed on the packing slip with the items listed on the purchase order. Then another employee records the items received and database tables are updated. Spice House generates a receiving report and an exception report listing items on the purchase order that have not been received. The reports are sent to the account (receiving report)and the vendor (exception report).
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
Annotate the Spice House Receive Items narrative.

Question 66

The document that lists all the items delivered and is included with the items is called a ________.

Question 67

A ________ is a document that lists items to be ordered, quantity, vendor information, and the date.

Question 68

Bill Payment DFD
Which datastore is not in the Bill Payment DFD?

A)General Ledger
B)Vendor
C)Cash Account
D)Accounts Payable

Question 69

Spice House Purchase Order Narrative
On Monday of each week, the manager of Spice House generates an inventory report. For items that are low, the manager creates a purchase order. The manager sends the purchase order to the vendor.
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
Create an EAD table for the Spice House Purchase Order narrative.

Question 70

Spice House Receive Items Narrative
When Spice House receives the inventory items from the vendor, an employee verifies the items listed on the packing slip with the items listed on the purchase order. Then another employee records the items received and database tables are updated. Spice House generates a receiving report and an exception report listing items on the purchase order that have not been received. The reports are sent to the account (receiving report)and the vendor (exception report).
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
Create an EAD table for the Spice House Receive Items narrative.

Question 71

When receiving inventory, which table is usually not used?

A)Cash Account table
B)Purchase Order table
C)Vendor table
D)Item table

Question 72

Spice House Purchase Order Narrative
On Monday of each week, the manager of Spice House generates an inventory report. For items that are low, the manager creates a purchase order. The manager sends the purchase order to the vendor.
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
Create a DFD for the Spice House Purchase Order narrative.

Question 73

Acme Purchase Narrative
Acme needs to purchase more copper to make widgets. Acme submits an order to the copper vendor online. When Acme receives the copper shipment, the receiving department processes the shipment. Acme receives an invoice and processes the bill. The corresponding database tables are updated.
What are the events in the Acme Purchase Narrative?

A)Submit Purchase Order, Receive Shipment, Enter Bills
B)Submit Purchase Order, Process Shipment, Receive Invoice
C)Submit Purchase Order, Receive Shipment, Receive Invoice
D)Submit Purchase Order, Process Shipment, Process Bills

Question 74

Spice House Receive Items Narrative
When Spice House receives the inventory items from the vendor, an employee verifies the items listed on the packing slip with the items listed on the purchase order. Then another employee records the items received and database tables are updated. Spice House generates a receiving report and an exception report listing items on the purchase order that have not been received. The reports are sent to the account (receiving report)and the vendor (exception report).
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
Payroll consists of printing payroll checks and paying payroll liabilities.

Question 75

Spice House Receive Items Narrative
When Spice House receives the inventory items from the vendor, an employee verifies the items listed on the packing slip with the items listed on the purchase order. Then another employee records the items received and database tables are updated. Spice House generates a receiving report and an exception report listing items on the purchase order that have not been received. The reports are sent to the account (receiving report)and the vendor (exception report).
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
Create a DFD for the Spice House Receive Items narrative.

Question 76

Spice House Purchase Order Narrative
On Monday of each week, the manager of Spice House generates an inventory report. For items that are low, the manager creates a purchase order. The manager sends the purchase order to the vendor.
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
Annotate the Spice House Purchase Order narrative.

Question 77

The Create Purchase Orders, Receive Items, and Enter Bills are in which baseline accounting system?

A)Reporting
B)Customer
C)Banking
D)Vendor

Question 78

Which table would be used when processing a purchase order?

A)Customer table
B)Employee table
C)Item table
D)Invoice Line table

Question 79

Acme Purchase Narrative
Acme needs to purchase more copper to make widgets. Acme submits an order to the copper vendor online. When Acme receives the copper shipment, the receiving department processes the shipment. Acme receives an invoice and processes the bill. The corresponding database tables are updated.
Who are the agents in the Acme Purchase Narrative?

A)Customer, Receiving department
B)Vendor, Receiving department
C)Customer, Receiving department, Accounting department
D)Vendor, Receiving department, Accounting department

Question 80

Spice House Receive Items Narrative
When Spice House receives the inventory items from the vendor, an employee verifies the items listed on the packing slip with the items listed on the purchase order. Then another employee records the items received and database tables are updated. Spice House generates a receiving report and an exception report listing items on the purchase order that have not been received. The reports are sent to the account (receiving report)and the vendor (exception report).
Spice House database tables: Item, Customer, Sales Order, Sales Order Line, Vendor, Purchase Order, Purchase Order Line, Employees, Employee Type, Time, Cash Receipts, Cash Account, and General Ledger
The pay employees and pay payroll liabilities are part of the ________ baseline accounting module.