425 Exam 2 Questions & Answers.
1. The revenue cycle consists of two subsystems-sales order
pro- cessing and cash
receipts
2. The reconciliation that occurs in the the goods shipped match the
shipping department is intended to
goods ordered
ensure that
3. The adjustment to accounting records to reflect inventory control
department
the decrease in inventory due to a sale
occurs in the
4. Which document triggers the revenue cycle? the customer purchase
order
5. Copies of the sales order can be used for purchase order
all of the following except
6. The purpose of the sales invoice is to bill the customer
7. The customer open order file is used to respond to customer queries
8. The stock release copy of the sales order is record the reduction of inventory
not used to
9. The shipping notice informs the billing
department of the
quantities shipped
10. The billing department is not responsible for updating the inventory
subsidiary
records
11. Customers should be billed for back- the backordered goods are
orders when shipped
1/
43
, 425 Exam 2 Questions & Answers.
12. Usually specific authorization is required for all sales of goods at the
list price
of the following except
13.
2/
43
, 425 Exam 2 Questions & Answers.
Which of following functions should be segre-
opening the mail and making the
gated? journal entry to record cash
receipts
14. Which situation indicates a weak internal
con- trol structure? the mailroom clerk authorizes credit
15. The most effective internal control memos
procedure to prevent or detect the
require management approval for
creation of fictitious credit
all credit memoranda
memoranda for sales returns is to
16. The accounts receivable clerk destroys
all in- prepare monthly customer state-
voices for sales made to members of her family
ments and does not record the sale in the
accounts receivable subsidiary ledger.
Which procedure
will not detect this fraud?
17. Which department is least likely to be accounts payable
involved in the revenue cycle?
18. Which document is included with a
packing slip
shipment sent to a customer?
19. Good internal controls in the revenue
all sales are profitable
cycle should ensure all of the
following except
20. Which control does not help to ensure authorize credit
that ac- curate records are kept of
customer accounts and inventory?
21. Internal controls for handling sales returns and computing bad debt
expense using
3/
43
, 425 Exam 2 Questions & Answers.
allowances do not include percentage of credit sales
22. The printer ran out of preprinted sales
invoice forms and several sales invoices
were not print-
4/
43
1. The revenue cycle consists of two subsystems-sales order
pro- cessing and cash
receipts
2. The reconciliation that occurs in the the goods shipped match the
shipping department is intended to
goods ordered
ensure that
3. The adjustment to accounting records to reflect inventory control
department
the decrease in inventory due to a sale
occurs in the
4. Which document triggers the revenue cycle? the customer purchase
order
5. Copies of the sales order can be used for purchase order
all of the following except
6. The purpose of the sales invoice is to bill the customer
7. The customer open order file is used to respond to customer queries
8. The stock release copy of the sales order is record the reduction of inventory
not used to
9. The shipping notice informs the billing
department of the
quantities shipped
10. The billing department is not responsible for updating the inventory
subsidiary
records
11. Customers should be billed for back- the backordered goods are
orders when shipped
1/
43
, 425 Exam 2 Questions & Answers.
12. Usually specific authorization is required for all sales of goods at the
list price
of the following except
13.
2/
43
, 425 Exam 2 Questions & Answers.
Which of following functions should be segre-
opening the mail and making the
gated? journal entry to record cash
receipts
14. Which situation indicates a weak internal
con- trol structure? the mailroom clerk authorizes credit
15. The most effective internal control memos
procedure to prevent or detect the
require management approval for
creation of fictitious credit
all credit memoranda
memoranda for sales returns is to
16. The accounts receivable clerk destroys
all in- prepare monthly customer state-
voices for sales made to members of her family
ments and does not record the sale in the
accounts receivable subsidiary ledger.
Which procedure
will not detect this fraud?
17. Which department is least likely to be accounts payable
involved in the revenue cycle?
18. Which document is included with a
packing slip
shipment sent to a customer?
19. Good internal controls in the revenue
all sales are profitable
cycle should ensure all of the
following except
20. Which control does not help to ensure authorize credit
that ac- curate records are kept of
customer accounts and inventory?
21. Internal controls for handling sales returns and computing bad debt
expense using
3/
43
, 425 Exam 2 Questions & Answers.
allowances do not include percentage of credit sales
22. The printer ran out of preprinted sales
invoice forms and several sales invoices
were not print-
4/
43
