Invoice and Revenue Cycle

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Chap 10 Revenue Cycle
ANGEL AVAKIAN |
Started: May 5, 2012 11:45 AM|
Questions: 35 |
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1. ais11r 10-2 (Points: 1)   |
 | The revenue cycle is a 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?

a. competitors

b. customers

c. marketing organizations

d. creditors

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2. ais11r 10-15 (Points: 1)   |
 | The maximum allowable account balance for a given customer is called the

a. credit limit.

b. backorder point.

c. credit checkpoint.

d. reorder point.

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3. ais11r 10-66 (Points: 1)   |
 | Which of the following is an example of a wireless technology used to increase the efficiency of picking and packing products for shipment?

a. laser scans

b. RFID

c. Bar codes

d. OCR

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4. ais11r 10-65 (Points: 1)   |
 | In Petaluma, California, electric power is provided to consumers by the Power To The People Electrical Company, a local co-op. Each month PTTP mails bills to 70,000 households and then processes payments as they are received. The customers are provided with a remittance advice, which is a

a. confirmation of the firm's privacy policy.

b. turnaround document.

c. warning that failure to pay by the due date will result in a late charge.

d. bill.

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5. ais11r 10-22 (Points: 1)   |
 | Once a customer order has been approved, which document is produced next?

a. the packing slip

b. the sales invoice

c. the purchase order

d. the remittance advice

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6. ais11r 10-28 (Points: 1)   |
 | A company uses an invoice method whereby customers typically pay according to each invoice. This is the ________ method.

a. open-invoice

b. cycle billing

c. balance forward

d. monthly statement

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7. ais11r 10-29 (Points: 1)   |
 | A type of accounts receivable system that matches specific invoices and payments from the customer is called a(n) ________ system.

a. balance forward

b. closed invoice

c. open invoice

d. cycle billing

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8. ais11r 10-26 (Points: 1)   |
 | For a given order, assume that goods have been picked for shipment and the items and quantities have been entered into the system. Which system update below is not triggered by these actions?

a. any back orders are initiated

b. shipping documents such as the bill of lading are produced

c. the customer accounts receivable is posted

d. inventory quantities are updated

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9. ais11r 10-9 (Points: 1)   |
 | Matching customer accounts and inventory item numbers to the information in the customer and inventory master files is an example of a

a. completeness test

b. field check

c. reasonableness test

d. validity check

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10. ais11r 10-72 (Points: 1)   |
 | Because it is the most fungible of all assets, the management of cash has always been the most difficult of all control issues. The most important of cash controls is

a. frequent reconciliation of records.

b. segregation of duties.

c. minimization of cash handling.

d. lockbox arrangements.

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11. ais11r 10-69 (Points: 1)   |
 | The shipping department at Squishy Things Toy Company follows policies that determine which carrier will deliver orders according to the size, weight, and destination of the shipment. It maintains standing agreements with shippers that specify legal responsibility for the shipment while it is in transit. The terms of the agreements define an...
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