Revenue Cycle

Question 0

In the revenue cycle, before a shipping notice is prepared, the shipping department personnel should match the inventory received from the warehouse to details from

Answer 0

Picking ticket and sales order

Question 1

In organizations with at least basic segregation of duties, the credit manager reports to the —–and the treasurer reports to the —–

Answer 1

Treasurer, Vice President of finance

Question 2

Which of the following documents would normally trigger the billing process in the revenue cycle

Answer 2

Packing slip received from the shipping department

Question 3

Which of the following documents would normally trigger the process to record a customer payment

Answer 3

Remittance advice

Question 4

Which document should always be included with a merchandise shipment to a customer

Answer 4

Packing slip

Question 5

Accounting recognizes a sale when

Answer 5

Inventory becomes the legal property of the customer

Question 6

What is the primary objective of the revenue cycle

Answer 6

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

Question 7

Which of the following is not a basic activity of the revenue cycle

Answer 7

Receiving

Question 8

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

Answer 8

General authorization by a sales clerk

Question 9

Two documents usually accompany goods shipped to a customer. What are the two documents?

Answer 9

A packing slip and a bill of lading