front 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. | back 1 Picking ticket |
front 2 Which of the following duties could be performed by the same individual and not violate segregation of duty controls? | back 2 Handling cash receipts and mailing vendor payments. |
front 3 In a cash collection system with proper controls, the _____ function, responsible to the ______, is separate and distinct from the cash handling activities. | back 3 Accounts receivable; controller |
front 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. | back 4 Cashier; treasurer |
front 5 When customers send their remittances electronically to the companys bank, this is called? | back 5 EFT |
front 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. | back 6 Cycle billing |
front 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. | back 7 Turnaround |
front 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. | back 8 Balance foward |
front 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? | back 9 Remittance advice |
front 10 A company uses an invoice method whereby customers typically pay according to each invoice. This is the _____ method. | back 10 Open- invoice. |
front 11 Two documents usually accompany goods sent from the vendor to the customer. What are these two documents? | back 11 A packing slip and a bill of lading |
front 12 In a shipping department, a ____ is a legal contract that defines responsibility for goods that are in transit. | back 12 Bill of lading |
front 13 Once a customer order has been approved, which document is produced next? | back 13 Packing slip |
front 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? | back 14 CRM system |
front 15 Customer inquiries during the sales order process are best handled by? | back 15 A sales order and customer service person. |
front 16 When an inventory item that is not in stock has been ordered by a customer, a back order is sent to the? | back 16 Production or purchasing department |
front 17 How is credit approval generally handled for well-established customers with a documented payment history? | back 17 Routine approval is usually granted |
front 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? | back 18 The customers credit should be checked for a sale on account. |
front 19 During the sales order entry process, a _____ is performed to verify that each transaction record contains all appropriate data items. | back 19 Completeness test |
front 20 Matching customer accounts and inventory item numbers to the information in the customer and inventory master files is an example of a? | back 20 Validity check |
front 21 Which if the activities listed below is not part of the revenue cycle? | back 21 Receiving |
front 22 The credit manager reports to the _____ and the treasurer reports to the _______. | back 22 Treasurer; vice president of finance |
front 23 What is the primary objective of the revenue cycle? | back 23 To provide the right product in the right place at the right time at the right place. |
front 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? | back 24 Customers |
front 25 Document used to authorize reducing the balance in a customer account | back 25 Credit memo |
front 26 Process of dividing customer account master file into subsets and preparing invoices one subset at a time | back 26 Cycle billing |
front 27 System that integrates EFT and EDI Information | back 27 FEDI |
front 28 System that contains customer related data organized in a manner to facilitate customer service, sales, and retention. | back 28 CRM system |
front 29 Method of maintaining customer accounts that generates payments for each individual sales transaction. | back 29 Open-invoice method |
front 30 Maximum possible account balance for a customer | back 30 Credit limit |
front 31 Post office box to which customers send payments | back 31 Lockbox |
front 32 Document used to indicate stockouts exist | back 32 Back order |
front 33 Document used to establish responsibility for shipping goods via a third party | back 33 Bill of lading |
front 34 Document that authorizes removal of merchandise from inventory | back 34 Picking ticket |
front 35 Turnaround documents returned by customers with payments | back 35 Remittance advice |