The is a legal contract that defines responsibility for goods that are in transit

In a shipping department, a.is a legal contract that defines responsibility for goods that are intransit.

The last step in the revenue cycle is cash collections. The accounts receivable department must knowwhen customers pay their invoices, yet segregation of duty controls dictate that the collection andrecording functions be kept separate from each other. What is a solution to this potential internal controlproblem?

16The benefits of a cash lockbox system are maximized when

To ensure proper separation of duties the.makes decisions concerning issuance of credit memos.

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

Consider the following revenue cycle scenario: The company has been exposed to customerdissatisfaction and the suggested control procedure to be implemented is to install and use bar-codescanners. What is the threat?

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

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

A company fails to bill customers due to lack of controls. The exposure the company faces is

Which activity is part of the sales order entry process?

Which document often accompanies merchandise shipped to a customer?

Which method is most likely used when a company offers customers discounts for prompt payment?

1

In the shipping area of the company, the _____ is used to obtain the goods from the warehouse facility and prepare them for shipment to the customer.

2

Which of the following duties could be performed by the same individual and not violate segregation of duty controls?

Handling cash receipts and mailing vendor payments.

3

In a cash collection system with proper controls, the _____ function, responsible to the ______, is separate and distinct from the cash handling activities.

Accounts receivable; controller

4

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.

5

When customers send their remittances electronically to the companys bank, this is called?

6

A _____ system spreads out the monthly statements to customers over the entire month with the idea being that the processing load and cash flow will be more even.

7

A type of business document in which part of the original document is returned to the source for further processing is called a ____ document.

8

With a(n) _____ system, customers pay according to the amount showing on their monthly statement and payments are simply applied against the total account balance.

9

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?

10

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

11

Two documents usually accompany goods sent from the vendor to the customer. What are these two documents?

A packing slip and a bill of lading

12

In a shipping department, a ____ is a legal contract that defines responsibility for goods that are in transit.

13

Once a customer order has been approved, which document is produced next?

14

Responding to customer inquiries and general customer service is an important aspect in the revenue cycle. Since customer service is so important, software programs have been created to help manage this function. These special software packages are called?

15

Customer inquiries during the sales order process are best handled by?

A sales order and customer service person.

16

When an inventory item that is not in stock has been ordered by a customer, a back order is sent to the?

Production or purchasing department

17

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

Routine approval is usually granted

18

In the revenue cycle, a customer places an order or a certain product. Before the order is checked for inventory availability, what step should be taken?

The customers credit should be checked for a sale on account.

19

During the sales order entry process, a _____ is performed to verify that each transaction record contains all appropriate data items.

20

Matching customer accounts and inventory item numbers to the information in the customer and inventory master files is an example of a?

21

Which if the activities listed below is not part of the revenue cycle?

22

The credit manager reports to the _____ and the treasurer reports to the _______.

Treasurer; vice president of finance

23

What is the primary objective of the revenue cycle?

To provide the right product in the right place at the right time at the right place.

24

The revenue cycle is recurring set of business activities and related information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales. With whom is the primary external exchange of information?

25

Document used to authorize reducing the balance in a customer account

26

Process of dividing customer account master file into subsets and preparing invoices one subset at a time

27

System that integrates EFT and EDI Information

28

System that contains customer related data organized in a manner to facilitate customer service, sales, and retention.

29

Method of maintaining customer accounts that generates payments for each individual sales transaction.

30

Maximum possible account balance for a customer

31

Post office box to which customers send payments

32

Document used to indicate stockouts exist

33

Document used to establish responsibility for shipping goods via a third party

34

Document that authorizes removal of merchandise from inventory

35

Turnaround documents returned by customers with payments