Question 1

A(n) ________ system prepares and mails monthly statements to customers throughout the entire month,instead of just at the end of the month.

Accepted Answer

A)  continuous
B)  open-invoice
C)  cycle billing
D)  balance forward

Question 2

An accounts receivable aging report is useful for doing everything except

Accepted Answer

A)  estimating bad debts.
B)  estimating future sales.
C)  projecting the timing of future cash flows.
D)  deciding whether to increase a specific customer's credit limit.

Question 3

The best solution for maintaining accurate automated perpetual inventory system is to use

Accepted Answer

A)  closed-loop verification when inventory is received from vendors and recorded.
B)  point of sale devices integrated with inventory records.
C)  periodic physical counts to reconcile with perpetual inventory records.
D)  RFID tags.

Question 4

Suppose management wanted to increase the speed of processing customer payments.One way to speed up payment transaction processing is to

Accepted Answer

A)  use a FEDI.
B)  use JEDI analysis software.
C)  eliminate credit sales.
D)  extend the amount of credit offered to customers.

Question 5

A document typically encountered in the revenue cycle that is both an output document and a source document is the

Accepted Answer

A)  sales invoice.
B)  customer purchase order.
C)  sales order.
D)  packing slip.

Question 6

The shipping department at Eka Toys 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 shipping agreements are documented on

Accepted Answer

A)  picking tickets.
B)  packing slips.
C)  bills of lading.
D)  RFID tags.

Question 7

Which of the following is not one of the controls when customer payments are commingled with other mail?

Accepted Answer

A)  preparing a remittance list as mail is opened
B)  restrictively endorsing checks when received
C)  requiring two mail room clerks to open mail together
D)  requiring the controller to be personally present when mail is received and opened

Question 8

A monthly statement sent to customers serves a control purpose by

Accepted Answer

A)  providing an opportunity for customers to verify the balance owed and activity on the account.
B)  triggering the process to record a customer payment.
C)  summarizing invoices and amounts due for customers.
D)  reminding customers of the balance due and due date.

Question 9

A serious exposure in the revenue cycle is loss of assets.What is the related threat and applicable control procedure that address this exposure?

Accepted Answer

A)  shipping errors;reconciliation of sales order with picking ticket and packing slip
B)  theft of cash;segregation of duties and minimization of cash handling
C)  making sales that turn out to be uncollectible;force sales people to make collection calls on customers with past due balances
D)  poor performance;preparation and review of performance reports

Question 10

When a proper segregation of duties exists in the area of handling cash receipts,the ________,who reports to the ________,actually handles the cash and is not the same person who posts cash receipts to customer accounts.

Accepted Answer

A)  cashier;treasurer
B)  cashier;controller
C)  accountant;treasurer
D)  accountant;controller

Question 11

Describe the basic revenue cycle activities.

Accepted Answer

The revenue cycle is a recurring set of ...

Question 12

A method for tracking accounts receivable that matches specific invoices and payments from the customer is called a(n) ________ method.

Accepted Answer

A)  specific identification
B)  balance forward
C)  cycle billing
D)  open-invoice

Question 13

Which of the following is not a key decision that needs to be made in the revenue cycle?

Accepted Answer

A)  How should merchandise be delivered to customers?
B)  Should credit be extended to customers?
C)  How can customer payments be processed to maximize cash flow?
D)  Which vendor should inventory be purchased from?

Question 14

What is QR codes and can companies use them to improve interactions with their customers?

Accepted Answer

QR codes are two-dimensional bar codes t...

Question 15

The ________ should always be included with a merchandise shipment to a customer.

Accepted Answer

A)  picking ticket
B)  packing slip
C)  sales invoice
D)  remittance advice

Question 16

How is credit approval generally handled for established customers with a documented payment history?

Accepted Answer

A)  A new credit application is requested.
B)  General authorization by a sales clerk
C)  Specific authorization by the credit manager
D)  A formal credit check should be made for each sale.

Question 17

The ________ normally triggers the billing process in the revenue cycle.

Accepted Answer

A)  sales order received from the sales department
B)  picking ticket received from the sales department
C)  packing slip received from the shipping department
D)  journal voucher received from the shipping department

Question 18

What is image processing technology and how can it help companies improve the efficiency and effectiveness of managing their customer accounts?

Accepted Answer

Image processing technology can further ...

Question 19

Explain how to effectively segregate duties in the sales order activity.

Accepted Answer

Sales orders should be recorded by sales...

Question 20

An ________ is an arrangement where a bank receives customer payments and transmits payment data to the organization.

Accepted Answer

A)  e-commerce
B)  electronic funds transfer (EFT) 
C)  electronic lockbox
D)  electronic data interchange (EDI)

Exam 12: The Revenue Cycle: Sales to Cash Collections

Suppose management wanted to increase the speed of processing customer payments.One way to speed up payment transaction processing is to

Correct Answer
verified

The best solution for maintaining accurate automated perpetual inventory system is to use

Correct Answer
verified

A serious exposure in the revenue cycle is loss of assets.What is the related threat and applicable control procedure that address this exposure?

Correct Answer
verified

An ________ is an arrangement where a bank receives customer payments and transmits payment data to the organization.

Correct Answer
verified

A document typically encountered in the revenue cycle that is both an output document and a source document is the

Correct Answer
verified

Which of the following is not a key decision that needs to be made in the revenue cycle?

Correct Answer
verified

What is image processing technology and how can it help companies improve the efficiency and effectiveness of managing their customer accounts?

Correct Answer
verified
Image processing technology can further ...
View Answer

The ________ should always be included with a merchandise shipment to a customer.

Correct Answer
verified

A(n) ________ system prepares and mails monthly statements to customers throughout the entire month,instead of just at the end of the month.

Correct Answer
verified

The ________ normally triggers the billing process in the revenue cycle.

Correct Answer
verified

Correct Answer
verified

A monthly statement sent to customers serves a control purpose by

Correct Answer
verified

A method for tracking accounts receivable that matches specific invoices and payments from the customer is called a(n) ________ method.

Correct Answer
verified

When a proper segregation of duties exists in the area of handling cash receipts,the ,who reports to the ,actually handles the cash and is not the same person who posts cash receipts to customer accounts.

Correct Answer
verified

Describe the basic revenue cycle activities.

Correct Answer
verified
The revenue cycle is a recurring set of ...
View Answer

Explain how to effectively segregate duties in the sales order activity.

Correct Answer
verified
Sales orders should be recorded by sales...
View Answer

Which of the following is not one of the controls when customer payments are commingled with other mail?

Correct Answer
verified

How is credit approval generally handled for established customers with a documented payment history?

Correct Answer
verified

An accounts receivable aging report is useful for doing everything except

Correct Answer
verified

What is QR codes and can companies use them to improve interactions with their customers?

Correct Answer
verified
QR codes are two-dimensional bar codes t...
View Answer

Exam 12: The Revenue Cycle: Sales to Cash Collections

Suppose management wanted to increase the speed of processing customer payments.One way to speed up payment transaction processing is to

Correct AnswerverifiedShow Answer

The best solution for maintaining accurate automated perpetual inventory system is to use

Correct AnswerverifiedShow Answer

A serious exposure in the revenue cycle is loss of assets.What is the related threat and applicable control procedure that address this exposure?

Correct AnswerverifiedShow Answer

An ________ is an arrangement where a bank receives customer payments and transmits payment data to the organization.

Correct AnswerverifiedShow Answer

A document typically encountered in the revenue cycle that is both an output document and a source document is the

Correct AnswerverifiedShow Answer

Which of the following is not a key decision that needs to be made in the revenue cycle?

Correct AnswerverifiedShow Answer

What is image processing technology and how can it help companies improve the efficiency and effectiveness of managing their customer accounts?

Correct AnswerverifiedImage processing technology can further ...View AnswerShow Answer

The ________ should always be included with a merchandise shipment to a customer.

Correct AnswerverifiedShow Answer

A(n) ________ system prepares and mails monthly statements to customers throughout the entire month,instead of just at the end of the month.

Correct AnswerverifiedShow Answer

The ________ normally triggers the billing process in the revenue cycle.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A monthly statement sent to customers serves a control purpose by

Correct AnswerverifiedShow Answer

A method for tracking accounts receivable that matches specific invoices and payments from the customer is called a(n) ________ method.

Correct AnswerverifiedShow Answer

When a proper segregation of duties exists in the area of handling cash receipts,the ________,who reports to the ________,actually handles the cash and is not the same person who posts cash receipts to customer accounts.

Correct AnswerverifiedShow Answer

Describe the basic revenue cycle activities.

Correct AnswerverifiedThe revenue cycle is a recurring set of ...View AnswerShow Answer

Explain how to effectively segregate duties in the sales order activity.

Correct AnswerverifiedSales orders should be recorded by sales...View AnswerShow Answer

Which of the following is not one of the controls when customer payments are commingled with other mail?

Correct AnswerverifiedShow Answer

How is credit approval generally handled for established customers with a documented payment history?

Correct AnswerverifiedShow Answer

An accounts receivable aging report is useful for doing everything except

Correct AnswerverifiedShow Answer

What is QR codes and can companies use them to improve interactions with their customers?

Correct AnswerverifiedQR codes are two-dimensional bar codes t...View AnswerShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Image processing technology can further ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

When a proper segregation of duties exists in the area of handling cash receipts,the ,who reports to the ,actually handles the cash and is not the same person who posts cash receipts to customer accounts.

Correct Answer
verified

Correct Answer
verified
The revenue cycle is a recurring set of ...
View Answer

Correct Answer
verified
Sales orders should be recorded by sales...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
QR codes are two-dimensional bar codes t...
View Answer