Chapter 7 Flashcards
________ is not a basic activity of the revenue cycle
Receiving
Which of the decisions below is not ordinarily found as part of the revenue cycle?
A) What credit terms should be offered?
B) How often should accounts receivable be subjected to audit?
C) How can customer payments be processed to maximize cash flows?
D) What are the optimal prices for each product or service?
How often should accounts receivable be subjected to audit?
Which of the following is not a key decision that needs to be made in the revenue cycle?
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?
Which vendor should inventory be purchased from?
Which of the following duties could be performed by the same individual and not violate segregation of duty controls?
A) handling cash and posting to customer accounts
B) issuing credit memos and maintaining customer accounts
C) handling cash and authorizing credit memos
D) handling cash receipts and mailing vendor payments
handling cash receipts and mailing vendor payments
The revenue cycle’s primary objective is to
provide the right product in the right place at the right time for the right price.
Which of the following controls can minimize the threat of theft of cash?
A) Separation of billing and shipping functions.
B) Use of cash registers.
C) Bar-code and RFID technology.
D) Restriction of access to master data.
Use of cash registers.
Which of the following controls can minimize the threat of theft of inventory?
A) Separation of billing and shipping functions.
B) Use of cash registers.
C) Bar-code and RFID technology.
D) Restriction of access to master data.
Bar-code and RFID technology.
Regularly reviewing an accounts receivable aging report can help management do what?
spot firms who are falling behind in their payments
Bogumil Distributors is an Internet-based wholesaler. Customers enter their orders online. The manager of Cezary Foods was entering an order when the following error message popped up: “Your order exceeds your available credit. You will be contacted within 8 hours.” This message is the result of a
limit check.
For strongest segregation of duties, a sales representative should never be allowed to
approve a sale on credit.
Special software packages called ________ can help an organization manage customer service.
CRM systems
The packing slip
lists the quantity and description of each item included in the shipment.
A document typically encountered in the revenue cycle that is both an output document and a source document is the
sales invoice.
