INMT 341 EXAM 1 QUESTIONS WITH VERIFIED
ANSWERS
What are the 3 business processes? - Answers - 1. Order to Cash
2. Procure to Pay
3. Conversion
Which business process has to do with customers? - Answers - Order to cash
Which business process has to do with vendors? - Answers - Procure to pay
Which business process has to do with things? - Answers - Conversion
Which business process is the most diverse? - Answers - Conversion
What are the order to cash business process events? - Answers - 1. market goods and
services
2. negotiate a sales order
3. select and inspect
4. prepare goods or services
5. deliver goods or services
6. receive payment
7. negotiate terms of return
What is the main objective of the order to cash business process? Secondary? -
Answers - Main: to make money
Secondary: to sell things
What are words that would signal that a situation is a part of the OTC market goods and
services business event? - Answers - Bid, Proposal, Package
What are the order to cash information processes? - Answers - 1. Process quote
requests
2. Process sales order
3. Record picking and shipping
4. Bill customer
5. Record cash collections
What OTC business event goes with the information process of 'process quote
requests'? - Answers - Market goods and services
What OTC business event goes with the information process of 'process sales order'? -
Answers - Negotiate sales order
, What OTC business event goes with the information process of 'record picking and
shipping'? - Answers - Deliver goods
What OTC business event goes with the information process of 'bill customer'? -
Answers - Deliver goods
What OTC business event goes with the information process of 'record cash
collections'? - Answers - Receive payment
What OTC information process is segregation of duties necessary? - Answers - Record
cash collections
Customer Order (OTC) - Answers - a request for merchandise by a customer;
negotiation begins
Sales Order (OTC) - Answers - document created to confirm the company will fulfill the
customer's order
Customer Master Data File (OTC) - Answers - where the record for existing customers
are stored
General Authorization (OTC) - Answers - used for customers who are below credit limit
and have good credit ratings
Specific Authorization (OTC) - Answers - for new customers, customers with past due
balances, customers wanting to extend credit limit; requires more review before
approval
Inventory Master Data File (OTC) - Answers - where a sales order is recorded
What does ATP stand for? (OTC) - Answers - available to purchase
On Hand Inventory (OTC) - Answers - item is physically present and available to
purchase; can reserve item for customer
Available to Purchase (OTC) - Answers - when inventory is on hand and the company
can dedicate the items in your order to you
Reserved (OTC) - Answers - when inventory is on hand, but reserved for a particular
person to purchase
On Order Inventory (OTC) - Answers - item is not physically present, but can order for
customer
Sales Order Transaction Data File (OTC) - Answers - where a sales order is recorded
ANSWERS
What are the 3 business processes? - Answers - 1. Order to Cash
2. Procure to Pay
3. Conversion
Which business process has to do with customers? - Answers - Order to cash
Which business process has to do with vendors? - Answers - Procure to pay
Which business process has to do with things? - Answers - Conversion
Which business process is the most diverse? - Answers - Conversion
What are the order to cash business process events? - Answers - 1. market goods and
services
2. negotiate a sales order
3. select and inspect
4. prepare goods or services
5. deliver goods or services
6. receive payment
7. negotiate terms of return
What is the main objective of the order to cash business process? Secondary? -
Answers - Main: to make money
Secondary: to sell things
What are words that would signal that a situation is a part of the OTC market goods and
services business event? - Answers - Bid, Proposal, Package
What are the order to cash information processes? - Answers - 1. Process quote
requests
2. Process sales order
3. Record picking and shipping
4. Bill customer
5. Record cash collections
What OTC business event goes with the information process of 'process quote
requests'? - Answers - Market goods and services
What OTC business event goes with the information process of 'process sales order'? -
Answers - Negotiate sales order
, What OTC business event goes with the information process of 'record picking and
shipping'? - Answers - Deliver goods
What OTC business event goes with the information process of 'bill customer'? -
Answers - Deliver goods
What OTC business event goes with the information process of 'record cash
collections'? - Answers - Receive payment
What OTC information process is segregation of duties necessary? - Answers - Record
cash collections
Customer Order (OTC) - Answers - a request for merchandise by a customer;
negotiation begins
Sales Order (OTC) - Answers - document created to confirm the company will fulfill the
customer's order
Customer Master Data File (OTC) - Answers - where the record for existing customers
are stored
General Authorization (OTC) - Answers - used for customers who are below credit limit
and have good credit ratings
Specific Authorization (OTC) - Answers - for new customers, customers with past due
balances, customers wanting to extend credit limit; requires more review before
approval
Inventory Master Data File (OTC) - Answers - where a sales order is recorded
What does ATP stand for? (OTC) - Answers - available to purchase
On Hand Inventory (OTC) - Answers - item is physically present and available to
purchase; can reserve item for customer
Available to Purchase (OTC) - Answers - when inventory is on hand and the company
can dedicate the items in your order to you
Reserved (OTC) - Answers - when inventory is on hand, but reserved for a particular
person to purchase
On Order Inventory (OTC) - Answers - item is not physically present, but can order for
customer
Sales Order Transaction Data File (OTC) - Answers - where a sales order is recorded
