Unit 3 - Module 3 Flashcards
Customer Order
Document indicating the type and quantity of merchandise being requested.
Sales Order
Source document that captures such vital information as the name and address of the customer making the purchase; the customer’s account number; the name, number, and description of the product; the quantities and unit price of the items sold; and other financial information.
Sales Order (Credit Copy)
Copy of sales order sent by the receive-order task to the check-credit task. It is used to check the credit-worthiness of a customer.
Approved Sales Order
Contains sales order information for the sales manager to review once the sales order is approved.
Stock Release
Document that identifies which items of inventory must be located and picked from the warehouse shelves.
Verified Stock Release
After stock is picked, verification of the order for accuracy and release of the goods.
Back-Order
Records that stay on file until the inventories arrive from the supplier. Back-ordered items are shipped before new sales are processed.
Stock Records
Formal accounting records for controlling inventory assets.
Packing Slip
Document that travels with the goods to the customer to describe the contents of the order.
Shipping Notice
Document that informs the billing department that the customer’s order has been filled and shipped.
Bill of Lading
Formal contract between the seller and the shipping company that transports the goods to the customer.
Shipping Log
Specifies orders shipped during the period.
Sales Order (Invoice Copy)
Copy of sales order to be reconciled with the shipping notice. It describes the products that were actually shipped to the customer.
S.O. pending file
File used to store the sales order (invoice copy) from the receive-order task until receipt of the shipping notice.
Sales journal
Special journal used for recording completed sales transactions
Journal Voucher
Summarizes details of the sales journals
Journal Voucher File
Compilation of all journal vouchers posted to the general ledger.
Inventory Subsidiary Ledger
Ledger with inventory records updated from the stock release copy by the inventory control system
Accounts Receivable (AR) Subsidiary Ledger
Account record that shows activity by detail for each account type, and contains, at minimum: customer name; customer address; current balance; available credit; transaction dates; invoice numbers; and credits for payments, returns, and allowances.
Return Slip
Document recording the counting and inspection of items returned, prepared by the receiving department employee.
Credit Memo
Document used to authorize the customer to receive credit for the merchandise returned.
Approved Credit Memo
The credit manager evaluates the circumstances of the return and makes a judgment to grant (or disapprove) credit.
Remittance Advices
Source document that contains key information required to service the customers account.
Remittance List
Cash prelist, where all cash received is logged.
Cash Receipts Journal
Records that include details of all cash receipts transactions, including cash sales, miscellaneous cash receipts, and cash received.
Deposit Slip
Written notification accompanying a bank deposit that specifies and categorizes the funds (such as checks, bills, and coins) being deposited.
Controller’s
The cash receipts department typically reports to the treasurer, who has responsibility for financial assets. Accounting functions report to the controller. Normally these two general areas of responsibility are performed independently.
Point-of-Sale (POS) systems
Revenue system in which no customer accounts receivable are maintained and inventory is kept on the store’s shelves, not in a separate warehouse.
The primary risks associated with revenue cycle transactions:
- Selling to un-creditworthy customers
- Shipping customers the wrong items or incorrect quantities
- Inaccurately recording sales and cash receipts transactions in journals and accounts
- Misappropriation of cash receipts and inventory
- Unauthorized access to accounting records and confidential reports
Prenumbered documents
Documents (sales orders, shipping notices, remittance advices, etc) sequentially numbered by the printer that allow every transaction to be identified uniquely.
Multilevel security
It employs programmed techniques that permit simultaneous access to a central system by many users with different access privileges but prevent them from obtaining information for which they lack authorization.
Access Control List (ACL)
Lists containing information that defines the access privileges for all valid users of the resource. An access control list assigned to each resource controls access to system resources such as directories, files, programs, and printers.
Role-based access control (RBAC)
Formal technique for grouping users according to the system resources they require to perform their assigned tasks.
Role
Formal technique for grouping users according to the system resources they require to perform their assigned tasks.
Which document triggers the revenue cycle?
the customer purchase order the sales order the sales invoice the journal voucher
the customer purchase order
The correct answer is “the customer purchase order.” The customer purchase order triggers the revenue cycle. The receipt of the customer purchase order indicating the items and quantity required is the first step in the revenue cycle. Customer purchase orders can be received by phone, email, regular mail, or other means.
Which department is least likely to be involved in the revenue cycle?
billing credit shipping accounts payable
accounts payable
The correct answer is “accounts payable.” The accounts payable department is least likely to be involved in the revenue cycle. Accounts payable is charged with managing the segment of the expenditure cycle that involves payments to vendors and creditors.
The purpose of the sales invoice is to
bill the customer. select items from inventory for shipment. record reduction of inventory. transfer goods from seller to shipper.
bill the customer.
The correct answer is “bill the customer.” The purpose of the sales invoice is to bill the customer. The sales invoice will be sent to the customer for payment. At the same time the invoice will also update inventory, send a journal to the general ledger, and record the sales journal.
Which type of control is considered a compensating control for customer payments?
access control accounting records supervision segregation of duties
supervision
The correct answer is “supervision.” Supervision is a compensating control for customer payments. Compensating controls are put in place when more effective controls are deemed too difficult or costly to implement. Supervision is the simplest and most common form of compensating control.
Commercial accounting systems have fully integrated modules. The word “integrated” means that
batch processing is not an option. the transfer of information among modules occurs automatically. separate entries are made in the general ledger accounts and the subsidiary ledgers. the segregation of duties is not possible.
the transfer of information among modules occurs automatically.
The correct answer is “the transfer of information among modules occurs automatically.” The word “integrated” means that the transfer of information among modules occurs automatically. In a fully integrated system, the shipping advice will generate the request for invoice automatically. This eliminates the risk that the invoice request is not processed or is processed for a different amount.
