USPS 425 Exam 2 with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
(Just Released)
The revenue cycle consists of ✔Correct Answer-two subsystems-sales order processing and
cash receipts
The reconciliation that occurs in the shipping department is intended to ensure that ✔Correct
Answer-the goods shipped match the goods ordered
The adjustment to accounting records to reflect the decrease in inventory due to a sale occurs
in the ✔Correct Answer-inventory control department
Which document triggers the revenue cycle? ✔Correct Answer-the customer purchase order
Copies of the sales order can be used for all of the following except ✔Correct Answer-
purchase order
The purpose of the sales invoice is to ✔Correct Answer-bill the customer
The customer open order file is used to ✔Correct Answer-respond to customer queries
The stock release copy of the sales order is not used to ✔Correct Answer-record the reduction
of inventory
The shipping notice ✔Correct Answer-informs the billing department of the quantities
shipped
The billing department is not responsible for ✔Correct Answer-updating the inventory
subsidiary records
Customers should be billed for back-orders when ✔Correct Answer-the backordered goods
are shipped
Usually specific authorization is required for all of the following except ✔Correct Answer-sales
of goods at the list price
Which of following functions should be segregated? ✔Correct Answer-opening the mail and
making the journal entry to record cash receipts
, Which situation indicates a weak internal control structure? ✔Correct Answer-the mailroom
clerk authorizes credit memos
The most effective internal control procedure to prevent or detect the creation of fictitious
credit memoranda for sales returns is to ✔Correct Answer-require management approval for
all credit memoranda
The accounts receivable clerk destroys all invoices for sales made to members of her family and
does not record the sale in the accounts receivable subsidiary ledger. Which procedure will not
detect this fraud? ✔Correct Answer-prepare monthly customer statements
Which department is least likely to be involved in the revenue cycle? ✔Correct Answer-
accounts payable
Which document is included with a shipment sent to a customer? ✔Correct Answer-packing
slip
Good internal controls in the revenue cycle should ensure all of the following except
✔Correct Answer-all sales are profitable
Which control does not help to ensure that accurate records are kept of customer accounts and
inventory? ✔Correct Answer-authorize credit
Internal controls for handling sales returns and allowances do not include ✔Correct Answer-
computing bad debt expense using the percentage of credit sales
The printer ran out of preprinted sales invoice forms and several sales invoices were not
printed. The best internal control to detect this error is ✔Correct Answer-a batch total of sales
invoices to be prepared compared to the actual number of sales invoices prepared
Which department prepares the bill of lading? ✔Correct Answer-shipping
A remittance advice is ✔Correct Answer-is a turn-around document
A weekly reconciliation of cash receipts would include comparing ✔Correct Answer-the cash
prelist with bank deposit slips
At which point is supervision most critical in the cash receipts system? ✔Correct Answer-mail
room
EDI trading partner agreements specify all of the following except ✔Correct Answer-person to
authorize transactions
A cash prelist is ✔Correct Answer-a. a document that records sales returns and allowances
Answers |Actual Complete Exam |Already Graded A+
(Just Released)
The revenue cycle consists of ✔Correct Answer-two subsystems-sales order processing and
cash receipts
The reconciliation that occurs in the shipping department is intended to ensure that ✔Correct
Answer-the goods shipped match the goods ordered
The adjustment to accounting records to reflect the decrease in inventory due to a sale occurs
in the ✔Correct Answer-inventory control department
Which document triggers the revenue cycle? ✔Correct Answer-the customer purchase order
Copies of the sales order can be used for all of the following except ✔Correct Answer-
purchase order
The purpose of the sales invoice is to ✔Correct Answer-bill the customer
The customer open order file is used to ✔Correct Answer-respond to customer queries
The stock release copy of the sales order is not used to ✔Correct Answer-record the reduction
of inventory
The shipping notice ✔Correct Answer-informs the billing department of the quantities
shipped
The billing department is not responsible for ✔Correct Answer-updating the inventory
subsidiary records
Customers should be billed for back-orders when ✔Correct Answer-the backordered goods
are shipped
Usually specific authorization is required for all of the following except ✔Correct Answer-sales
of goods at the list price
Which of following functions should be segregated? ✔Correct Answer-opening the mail and
making the journal entry to record cash receipts
, Which situation indicates a weak internal control structure? ✔Correct Answer-the mailroom
clerk authorizes credit memos
The most effective internal control procedure to prevent or detect the creation of fictitious
credit memoranda for sales returns is to ✔Correct Answer-require management approval for
all credit memoranda
The accounts receivable clerk destroys all invoices for sales made to members of her family and
does not record the sale in the accounts receivable subsidiary ledger. Which procedure will not
detect this fraud? ✔Correct Answer-prepare monthly customer statements
Which department is least likely to be involved in the revenue cycle? ✔Correct Answer-
accounts payable
Which document is included with a shipment sent to a customer? ✔Correct Answer-packing
slip
Good internal controls in the revenue cycle should ensure all of the following except
✔Correct Answer-all sales are profitable
Which control does not help to ensure that accurate records are kept of customer accounts and
inventory? ✔Correct Answer-authorize credit
Internal controls for handling sales returns and allowances do not include ✔Correct Answer-
computing bad debt expense using the percentage of credit sales
The printer ran out of preprinted sales invoice forms and several sales invoices were not
printed. The best internal control to detect this error is ✔Correct Answer-a batch total of sales
invoices to be prepared compared to the actual number of sales invoices prepared
Which department prepares the bill of lading? ✔Correct Answer-shipping
A remittance advice is ✔Correct Answer-is a turn-around document
A weekly reconciliation of cash receipts would include comparing ✔Correct Answer-the cash
prelist with bank deposit slips
At which point is supervision most critical in the cash receipts system? ✔Correct Answer-mail
room
EDI trading partner agreements specify all of the following except ✔Correct Answer-person to
authorize transactions
A cash prelist is ✔Correct Answer-a. a document that records sales returns and allowances
